Microsoft Retail Stores: Hit or Miss?
Coinciding with the October 22nd Windows 7 release, Microsoft is launching its first retail store at the Fashion Square Mall in Scottsdale, Arizona (pictured). It’s anyone’s guess whether it’ll be hit or miss, especially since big media like BusinessWeek had once publicly addressed Steve Jobs and told him that his Apple Store concept would fail. Here’s what could go right — and wrong — with the Microsoft Store effort.
A recent Wall Street Journal article — which cited this erroneous BusinessWeek assumption — talks about the slum Apple pulled itself out of with the retail store and likens it to Microsoft’s current plight. But other than the general ‘copy cat’ argument people are making, lets take a look at the Microsoft Store objectively.
Pros
Microsoft offers a ton of stuff, no one disputes that. Instead of buying bits and pieces from 3rd party places like BestBuy, a PC/XBOX/Zune family would find a one-stop shop. Microsoft hasn’t ever ‘organized’ like this. They also haven’t ever had a place to ‘show off’ and debut new products. Mock-up pictures of the store show various interactive areas using Microsoft’s touch-technology, ‘Surface’, and that means it’s a chance for the every-day consumer to see that Microsoft, like Apple, is innovating. Having a store front in a mall has the potential to bring in drifters, too. A drifter in BestBuy might be unsure of what to buy, but one in a Microsoft store will likely be helped by a knowledgeable rep and presented with a Microsoft solution.
Overall idea: It helps keep Apple honest.
Cons
Failure could result from the Microsoft “Guru Bar.” (A play on Apple’s “Genius Bar.”)
When you’re an Apple Genius, you have a very limited set of hardware and software to troubleshoot. Essentially, there are only so many things that can ‘go wrong.’ If there’s a software issue, the resolution is likely to be true across all Macs, ditto for hardware. Fixes are relatively easy. But if you’re a Microsoft Guru, you’ll be looking at HP, Dell, Lenovo, Toshiba, or any number of miscellaneous brands that the store offers. Problems are much harder to pinpoint. Although the rumor mill claims the selection will be limited to stave off confusion, it’s still a very real issue. If it’s anything like the BestBuy “Geek Squad,” it’s not going to be a one-stop solution center like Apple. Plus, it’s unlikely Microsoft is going to offer a blanket warranty like “Apple Care.” When you water down the ‘customer service’ experience, it’s really just another brick-and-mortar consumer electronic store.
Overall idea: Microsoft isn’t really offering a new shopping experience.
Left Field
With the hype of Windows 7 on the horizon, opening the first Microsoft Store store on launch day could be a brilliant idea to acclerate sales and get people excited about the store. But, Microsoft never fails to show they don’t fully understand their demographic. Will you be lining up in Scottsdale for your copy of Windows 7 or the free Ashley Tisdale ticket?
Oh, Microsoft…
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Yeah, I’m sure there will be people aplenty queuing up to buy Zunes…..it’s such a hot item. All 3 of them will be flying off the shelves.
Simplicius: You’ve just pointed out MSFT’s biggest challenge. You need GREAT products for a dedicated retail store strategy to succeed. Windows 7 sounds like the real deal. But Zune? Ummm…. …
Don’t forget, the XBOX 360 is a pretty big commercial success, despite its faults.
@Dave
Yes, the XBOX 360 has sold a lot and it is part of a strong brand.
But I’m given to understand that it has only been profitable during a couple of quarters of its entire existence and that otherwise it has bled money. The same applies, in even greater measure, to the PS3. Only the Wii has been consistently profitable.
The XBOX 360’s hardware is also famously unreliable. You know as well as I do about the Red Ring of Death and the widely discussed high failure rate.
What Microsoft products do customers buy at retail? Apart from the XBox, everything else is software, that people get as part of a bundle with their machine. Hardly any customers buy retail Windows upgrades, for example.
So really, these stores are just XBox stores.
Let’s not forget the store will alienate hardware vendors. For those whose pc will make it into the store, good, for those deemed not worthy… Well, I imagine they will not be very happy at how MS treats them. They might get somewhat feisty with their offerings.
Blah: The VAR Guy agrees that Microsoft runs the “risk” of alienating some hardware partners. But our resident blogger is taking a wait-and-see approach to the Microsoft Stores. Until The VAR Guy walks through the stores and sees them in action, it’s premature for our blogger to say whether the stores will benefit or hurt certain hardware companies.