Microsoft launches second retail site

Update at 2:17 p.m. PST, with comments from Microsoft on fate of Windows Marketplace.

Microsoft is doubling down on retail, with the launch of a second online store at the start of this year's especially critical holiday shopping season.

The Microsoft Store, which opened for business Thursday, is designed to carry the largest and most up-to-date selection of the software giant's product lines, such as Office, Windows, Xbox, and Zune.

The one-stop shop will carry Microsoft hardware too.

Microsoft currently operates its Windows Marketplace e-commerce site, which it .

There are many similarities between the two sites, but with the launch of Microsoft Store, that will change.

"With the launch of the Microsoft Store, Windows Marketplace will shut down as an e-commerce site. Marketplace will transition from an e-commerce and referral site to a Web page that will refer customers to sites such as Microsoft Store, Windows Vista Compatibility Center, and other appropriate destinations," a Microsoft spokesman stated.

Meanwhile, according to a Microsoft team blog, the Microsoft Store is also accessible to folks in Germany, the United Kingdom, and Korea. Plans are in the works to add Japan, France, Spain, and the Netherlands in the near future, as well as other countries.

Microsoft is launching its new site at a time when retailers are facing a major downturn as concerns over a recession weigh on the minds and wallets of consumers.

Online retailer Amazon.com issued a cautious note regarding holiday sales when it reported its third-quarter financial results last month, while eBay lowered its fourth-quarter forecast.

As for Microsoft...in this current climate, two sites could have possibly been better than one.

[gsmiller88]

I see the products from their own store are just as overpriced as at any other store.

[Penguinisto]

So, err, what are they doing to prevent brand confusion? Is one site going to be North America only, and the other one rest-of-world only?

I can see their eagerness to stop using the "Windows" tag so much in this story; and coupled with their eagerness to use "Windows" instead of "Vista", I wonder if this is part of their overall marketing strategy (that is, to start being more generalized in their descriptions of themselves and their product)?

Their biggest problem with this is going to be name dilution and overall confusion - not quite on the scale of confusion back in the days when they labeled everything that moved in Redmond with a ".NET" tag, but enough that I really don't see it helping them.

/P

[quadj]

Actually, I see this as a good thing. I never understood why Microsoft didn't want its name associated with its products. After all, your products should define the company. The only thing I kept thinking was they must be ashamed of the products they produced.

Granted, making this change this late in the game will obviously cause confusion. They will have to deal with it and work through it. But at least they seem to be willing to accept ownership for the products they produce. This mirrors exactly with what Apple is doing. "The Microsoft Store" just makes more sense to me.

[lost_mained]

Reports released this week show that small technology deals and ones related to nontraditional media are likely to fare better during this recession year.
Reports released this week show that small technology deals and ones related to nontraditional media are likely to fare better during this recession year.
Reports released this week show that small technology deals and ones related to nontraditional media are likely to fare better during this recession year.
Reports released this week show that small technology deals and ones related to nontraditional media are likely to fare better during this recession year.
Reports released this week show that small technology deals and ones related to nontraditional media are likely to fare better during this recession year.
Reports released this week show that small technology deals and ones related to nontraditional media are likely to fare better during this recession year.

[lost_mained]

Their biggest problem with this is going to be name dilution and overall confusion - not quite on the scale of confusion back in the days when they labeled everything that moved in Redmond with a ".NET" tag, but enough that I really don't see it helping themTheir biggest problem with this is going to be name dilution and overall confusion - not quite on the scale of confusion back in the days when they labeled everything that moved in Redmond with a ".NET" tag, but enough that I really don't see it helping themTheir biggest problem with this is going to be name dilution and overall confusion - not quite on the scale of confusion back in the days when they labeled everything that moved in Redmond with a ".NET" tag, but enough that I really don't see it helping themTheir biggest problem with this is going to be name dilution and overall confusion - not quite on the scale of confusion back in the days when they labeled everything that moved in Redmond with a ".NET" tag, but enough that I really don't see it helping them