Did MS Learn from Last Retail Experience?

[Virtuoso]

Channel Wire reports that Microsoft may have learned from its previous failed retail outlets, and has hired a Wal-Mart veteran to help develop its business plan.

Obviously, much has changed in retail since 2001, and Microsoft may go in a different direction with its current retail push. But some partners wonder if Microsoft isn't stretching itself too thin by entering yet another market, this one arguably more challenging than any of the ones Microsoft currently plays in.

Judging by the fact that Wal-Mart maintains its profitability through what some see as "questionable" business practices, it will be interested to see exactly how profitable this venture will actually be.

From Channel Wire (http://www.crn.com/retail/214200547)

[GWhite]

I am just trying to figure out why MS needs a chain of stores. Apple had to create a chain as their retail presence was limited. MS products are available everywhere.

[Zander]

I am just trying to figure out why MS needs a chain of stores. Apple had to create a chain as their retail presence was limited. MS products are available everywhere.

Cutting out the middle man in order to reap more possible profit I'd guess. I just don't see it though, the up-front costs for something like this would be major and there is no guarantee that profits per-product would be higher than if they just used wal-mart/target/bestbuy/etc

[Snipee]

Cutting out the middle man in order to reap more possible profit I'd guess. I just don't see it though, the up-front costs for something like this would be major and there is no guarantee that profits per-product would be higher than if they just used wal-mart/target/bestbuy/etc

Watch them lower the price of thier games since you are buying direct. Hell, they may lower everything in thier store, since the profit goes straight to them, no one gets a cut.

[riposte101]

Watch them lower the price of thier games since you are buying direct. Hell, they may lower everything in thier store, since the profit goes straight to them, no one gets a cut.

If they did that it would anger all of their other retail partners. This just seems like MS pissing away more of their Windows and Office earnings.

[Wyrm]

They're trying to compete with Apple, I'd think. Apple's stores have been pretty successful.

[gojira]

Good point. Maybe MS wants more retail presence for products that aren't doing well? I don't think I've ever seen a Zune or whatever it's called in a store. But I can't go shopping anywhere with out seeing 9 billion add-ons and do-dads for iPods.

[Froggy]

Cartel (http://en.wikipedia.org/wiki/Cartel) anyone?