Microsoft to open retail chain
Microsoft Corp. on Thursday announced plans to open its own stores despite the economic downturn that has left many retailers struggling.
The company hired David Porter, a 25-year veteran of Wal-Mart Stores Inc., as its corporate vice president of retail stores. Porter was head of worldwide product distribution at DreamWorks Animation SKG Inc. since 2007.
Porter, who is set to start work on Tuesday, is charged with improving the PC-buying experience. The company said his first task will be to set the timing, locations and design of Microsoft-branded retail stores, which will sell computers installed with Microsoft software as well as other company products.
As usual, Microsoft is copying what the other leaders are doing. If they stay true to tradition, they will do it badly at first but throw money at the problem until they work out most of the kinks.
I'm not sure how much real impact this will have. In the short term, it won't have much, if any. But Microsoft is obviously setting things up for expansion latter. Start with a handful of stores in prominent locations and get the corporate framework setup, and then expand into a real national chain when the economy recovers.
This could have an interesting effect on Microsoft. I expect that in the long run, the XBox will be the high volume item for these stores, even if that is just a side line to start with. It could end up being a big step in Microsoft moving from being a software company to being an entertainment company.
Jay
