Microsoft starts selling PCs online

(Credit: CNET News)

NEW YORK--In a surprise move, Microsoft has started selling computers and third-party software via its online store.

It's part of a broader push to try to give Windows the kind of lift that Apple has gotten from its network of retail stores. Microsoft had said it would sell PCs at its brick-and-mortar stores, but it plans to open just two of those this year, including a Scottsdale, Ariz., location that opens later Thursday.

Early on Thursday, though, Microsoft revamped its online store, which had been an outlet only for Microsoft products. The remake of the online store comes just as Microsoft is launching Windows 7.

The revamped online store not only has Windows 7 for sale, but also a variety of machines running the new operating system, as well as other PC accessories and software from other vendors.

Clicking on laptops brings up a list of 10 models, organized by price, including two models below $750. The site also offers three Netbooks and a single desktop model, Lenovo's $999 A600 all-in-one.

On the software front, Microsoft is selling Norton 360 and Adobe Photoshop, along with Windows, Office, and other Microsoft products. Accessories include a lot of Microsoft keyboards, mice, and Webcams, along with flash drives and blank DVDs from other companies.

[anilsudh]

Ridiculously high priced crappy hardware.

[tektaktyks]

read:"trying to copy apple store"

[Lennron]

@ tektaktyks

HAHAHAHAHAHAHAHAHAHA! good one.

[Philips]

Many (me included) would pay extra provided that service is OK and MS itself would be solving my problems with their Windows.

I'm all for it. Pretty sure that many would find it great too.

Unless of course MS (as usually) would heed under EOMs' pressure and cripple all the experience.

Disclaimer: Mac, Linux and Windows user.

P.S. Nice thing too is that MS would have better connection to its users and consequently a chance to gather better statistics of what problems people actually do experience with their Windows and the hardware.

[BelkyB]

Why dont they sell Macs too?

Seriously, people run Windows on their Macs... Why the phuck not?

[Static-X-Machina]

OH MY GOD DO YOU HEAR YOURSELF?! MACS USE THE SAME THING! OMG! lol little hypocrite SHEEP!
Look there. it ain't microsoft made man. its all brand name computers and Microsoft sees the low budget computers being sold that are sub par spec. They don't include the PCs that have sub par equipment. Only the stuff that will run worth a crap.

[solitare_pax]

Just like everything else they do - copying Apple to keep up.

[aMUSICsite]

Like always not fully copying Apple.

These PC's seems to be US only, (something Apple never seems to do) the UK store don't have any PC's.

Any announcement from MS to state if this is US only or have they just not got around to updating the international sites yet?

BIGGER STORY is the MS homepage. Glowing praise from 'Twitter users'!!! What they could not get people with clout to praise Windows 7????

[Random_Walk]

Actually, I think it may be a warm-up (at least mid-to-long term).

In order to survive/thrive as time passes, I suspect that Microsoft is slowly preparing to sell its own branded hardware. I'm not talking about re-branding Logitech keyboards and mice, but eventually whole PCs.

Ballmer has to be looking at Apple, and seeing a company 1/10th the market size holding more cash in the bank than his is, and making a fantastic profit to boot. I don't care who you are, that's going to inspire some ideas.

[cptnjarhead]

"to keep up" ... hmmm... last time i looked, over 90% of computer world wide are using Windows OS... soooo... who is keeping up with whom?
Don't get me wrong.. i am no fanboy that is for sure.... but MS has a better business model than apple (imho)

[Lennron]

@ Random_Walk

I've been thinking for a few years now that Microsoft would get smart and start making whole PCs on their own. If they can make a videogame console, why can't they make their own computer? Whether you want to call it "keeping up" or not, it's would be a smart idea on their part.

[Random_Walk]

Dunno whether you want to call it "keeping up" either - after all, IIRC Dell sold computers off the Web long before Apple did.

Thing is, I can't imagine the CEO of any company, looking at a smaller competitor's raging fiscal successes, and not wanting a piece of the action for him/herself. Hell, if I were Steve Ballmer I'd by dying to try for it.

It's not like Microsoft doesn't sell whole systems now... as you've pointed out, they do Xboxes, they do Zunes, they do peripherals. It doesn't take much of a logical step to start selling whole machines.

The only thing I can see stopping them is that, aside from the peripherals, they really aren't turning a profit on their hardware. There's also the existing OEMs to consider: Dell, HP, Acer, et al wouldn't take this lying down, and such a transition would be fraught with lawsuits and DOJ inquests. OTOH, that didn't stop Microsoft from shutting down their PlaysForSure partners to sell the Zune.

either way, they can't go on selling just software forever. Set aside the technical aspects and let's look at the money. Microsoft is being squeezed from the bottom by Linux (even if customers don't actually buy Linux services, it makes for one hell of a cudgel during contract/purchase negotiations). They're being squeezed from the top in the consumer realm by Apple (who dominates the > $1000 consumer market), and in the enterprise by the likes of Linux (on servers), Oracle, IBM, etc etc.

Their software competitors are either making bank by selling hardware in the bargain (Apple), or by selling just the services and getting massive help from the world at large, as well as from individual competitors cooperating in the effort to get something done (Linux)

What I mean by the latter is that you have the likes of RedHat, Novell, Oracle, IBM and such competing with each other, but still sharing R&D and coding tasks, combined with help from hobbyists at large. Microsoft has no such advantage, and has to do their own homework.

To be fair, Apple has to do the majority of their own R&D too (though they get external help to some extent by having most of OSX as open source), but Apple makes their bank on hardware sales, with OSX in only a supporting role towards that fiscal end.

If Microsoft wants to survive (let alone thrive) in this changing landscape, they can't be content to simply sit on their existing user base and hope for the best. They have to choose a model and move to it. I don't see them releasing Windows as open source anytime soon, so I'm guessing that their biggest play will likely be to screw over the OEMs and start selling their own computers. This news article confirms for me that they're making a move in that direction.

[the_eternal_dark]

@Lennron

With MS track record on reliability of their consoles, would you really want to buy a PC built by them?

[nonstopdesign]

Microsoft: always on the cutting edge.

[shellcodes_coder]

Great move by Microsoft. I see SL melting even though the winter is coming near!!

[cbscowards]

Shelly, it's been a few days since you used the SL melting line. I was beginning to worry that you had swine flu or something. Enjoy your W7

[stickfu]

I guess you missed Apple`s quarterly report
At this rate even the 3rd world internet cafe you post from will switch

[topgunb2]

@stinkfu a drug dealer would have more profit margin, so does a brother owner, that doesn't make mac a good product, the market share speaks for itself.

[stickfu]

what`s a brother owner?

[expatincebu]

The Microsoft Store! Just like the Apple Store only not as good and five years to late! Can't wait to shop there, it's crackalackin!

[Renegade Knight]

So you are saying Apple should shut down their stores since the market's gone?

[Vegaman_Dan]

Expantincebu has a good point. Microsoft should follow the Apple Store model. Apple depends 100% on Microsoft for all in store purchases. Every single sale goes through the WinCE powered hand held 'registers' the Apple Store staff processes your purchases through.

Microsoft should then copy Apple's model and use only Apple powered point of sale systems for their sales and... and... um... yeah, okay, so that wouldn't work. But it's a nice thought for irony, hmm?

[Random_Walk]

@Dan:

Didn't Apple switch their POS to a non-Windows system earlier this year?

Oh - they did: http://www.roughlydrafted.com/2009/04/10/apple-stores-to-ditch-windows-easypay-systems-for-iphone-30/

[shycelticwitch]

random +1
VeggieDan -1

Dan, you're going to have to update your list of pre-typed responses, it looks like a lot of them are outdated.

[Vegaman_Dan]

@Random_Walk

"Didn't Apple switch their POS to a non-Windows system earlier this year?"

Nope. Please reread the article you quoted. You were mistaken.

@ShyCelticWitch:

A bit too fast on the hair trigger there. They haven't done it yet- they only plan to.

As of September of 2009, the Washington State Apple Stores were still using the WinCE devices. Perhaps Apple is rolling them out over time? So... as of last month, no, they have not converted. I did read the article you posted, and it is interesting, but even they don't state that it's being used in the stores yet- only that they are planning on it.

My question would be- why did they wait years to do this when there were already apps in the Apps store to do this?

Here's the trick- I READ the article that Penguinisto referred to. Did either of you?

[kojacked]

"Dan, you're going to have to update your list of pre-typed responses" Why? Random doesn't seem to update his list either... SCB -1

[Dalkorian]

Don't challenge Danny boy here with facts, it messes up his lies.

[CustomPCMAX1]

Seems like a good time for them to try something like this. Windows 7 is their saving grace, people will be holding them in a higher regard for a while, they should try to capitalize on this as much as possible. Is it a copy cat move, sort of... but Apple didn't invent the idea of a store front based around their products, they just really made theirs "cool" (I don't really mean that, I hate apple).

[AppleSuxLeo]

Sno-Jobs Leopard...buy it and become part of the Apple Beta program.

[Perry_Clease]

See this story http://news.cnet.com/8301-13860_3-10380296-56.html?part=rss&subj=news&tag=2547-1_3-0-20

[cbscowards]

I would think that longtime MS trolls would find positive things to day about W7 today instead of trying to drag down Apple. Unless, of course you do not actually have W7 yourself, perhaps because you cannot afford the $120 upgrade?

I still don't understand this mentality where you think that this is a "winner takes all" game. MS is motivated to improve their OS because there is competition. If that goes away, so does much of their motivation. How would you like to pay $250 to upgrade Home Premium? When competition is gone, you are at the mercy of the monopoiy.

That being said, congrats to MS and their fanboys on the release of W7.

[deniceels]

I'm sorry, as student here, we get free win7 and MacOSX 10.6.0/10.6.1 doesn't come free... so... hmm... who costs more?

[Random_Walk]

"I'm sorry, as student here, we get free win7"

* for a limited time period
* under certain restrictions that retail/OEM versions do not have.
* you paid for it with your lab fees.

[topgunb2]

@ Random_Walk you pay for mac with your peace of mind!

[koderkev]

This won't end well. Microsoft has always benefitted by remaining neutral toward the various PC makers. By favoring some and not others, it could cause vendors to question how important they are to Microsoft (not very) and perhaps offer Linux on more systems, since it's free and doesn't require them to pay MS for the "privilege" of installing Windows on their hardware.

[a3th3r]

They dont pay MS for the "privilege" they pay for the license, which is normal for most every piece of software sold. Don't like it? move to china. How is Microsoft going to make money if they give away their flagship product?

[Seaspray0]

OEM's are free to sell computers with linux if they wish. They've tried. Very few were bought.

[Vegaman_Dan]

Walmart, the largest retailer on the planet has tried *twice* to sell Linux powered PC's in their stores. They failed each time because there simply wasn't any customer demand for the product.

Them's da facts.

[baconstang]

Maybe it had something to do with zero tech sales support at Mall Wart.

[Vegaman_Dan]

@baconstang:

You could be right- there is unfortunately *no* linux support at retail stores that sell it. Even Apple offers support for their OS at their stores, and Microsoft is going this way as well. Perhaps we need an Ubuntu store. :)

[cbscowards]

Yes, I think that's the main stumbling block to widespread Linux adoption. I tried to install it on an old laptop to play around and ran into a lot of difficulties. I got a lot of great help online and was eventually successful, but the majority of consumers out there don't have the desire or know-how to start searching newsgroups and debug failures enough to ask intelligent questions.

[the_eternal_dark]

@Seaspray0
So that has stopped Dell and HP from offering it?

@Vegaman_Dan
Have you looked at the Linux powered PCs Walmart has tried to sell? Perhaps customers know crap hardware when they see it. Plus the OS choices were **** as well, come on, gOS and Lindows? There are better, more stable/usable OS's out there in the Linux world.

[terminalblue]

yeah, have to say that after seeing the online store, i am a little disappointed. The layout is kinda boring and i was hoping to see exclusive hardware, but instead it looks like a lame Best Buy.

These stores WILL NOT work unless they start getting exclusive and a little more high end.

[Seaspray0]

I don't understand these terms you use...
"exclusive" - do you mean like snobby and stuck up or more like yuppie and cliche?
"high end" - do you mean like overpriced or paying for a label?

[Vegaman_Dan]

He means 'like Apple".

Perhaps Microsoft doesn't WANT to be like Apple? Apple's reputation of late isn't exactly stellar. :/

[baconstang]

Right, only stellar with Wall St.

[shycelticwitch]

Dan... you've successfully graduated to the level of troll. Congratulations. Now I can skip your comments too, along with AppleSuxLeo, Shellcoder and Seaspray.

Face it... Apple is not going away, and as time goes by they are going to etch away at MS market share as more people begin to understand the meaning of quality, support and ROI. If MS starts making computers, I expect it will be with the same careless abandon that they write software, and it will be too little too late to stop the ebb of the tide.

Have fun installing your new W7... I heard it takes 21 hours or MORE. I still think I will wait to purchase it for the 2 PCs I MUST have on my network... at least until we know for SURE (general public, not a few beta testers) that it works.

[zyxxy]

21 hours? Total lie. It did take about four hours for a clean install (not upgrade) but I have a ton of media installed.
(who told you 21 hours? must have been a dog of a machine, or they walked away for 16 hours just before the first dialog window popped up.....)

A few beta testers? What rock have you been living under?

I do agree on the idea of waiting for 30 days for the rest of the retail market to roll out.

No Apple is not going away. Neither is Ubuntu, RedHat, Debian, SUSE, FreeBSD, or Microsoft.

More importantly, why do you care? Really? (Oh yeah, because you are a troll too!)

[Vegaman_Dan]

@Shycelticwitch:

I'm typing this on a MacBookPro 15" with Safari running OS X. It is a dual boot system with Win7 as well.

I don't expect Apple to go away. I certainly hope they don't- I like my Macbook.

You heard it takes 21 hours to install Windows 7? And you admitted that in a public forum? Wow... that takes a lot of courage to be so blatantly wrong. It also says all anyone needs to know about your technical ability though. As for me- I can install it in about 30 minutes.

No beta testers? Hmm, MSFT says there were more than 8 million. That's an awfully big number. Somehow I think I believe Microsoft has a weeeee bit more credibility than you do.

[casanegro]

Can I say junkware? Copy-pasted from the M$ $tore:

Microsoft Signature PCs come with full versions of the software you need, pre-configured and ready to run.* Included are:

Internet Explorer 8
Surf the Internet faster, safer, and more easily than ever before

Windows Media Center
Preconfigured home entertainment shell allowing users to watch/record TV and download videos/shows on PC, manage pictures, movies, music, play stored media from TV and handset; additional configuration included

Internet TV Update for Media Center
Software update which enables TV playback on PC

Playready PC Runtime (for WMC) Allows access to play-ready content

Microsoft Security Essentials
Automatically updated software that protects against malware, spyware, virus, worms, and other threats to your security

Microsoft Silverlight
Software for delivering rich Web applications similar to Adobe Flash; Web application run-time

Adobe Flash Player for IE
Software for viewing Shockwave Flash (SWF) animations and movies using Internet Explorer

Adobe Acrobat Reader
Software for viewing PDF documents

Bing 3D Maps
3D mapping program for Bing Maps

Zune 4.0
Music, video, FM radio, and podcast player; provides access to Zune marketplace for music and TV shows

Auto Collage 2009 Touch
Program for converting photographs into collages

Live ID Sign-in Assistant
Software utility to link Windows account with Live ID

LiveUpload for Facebook (for Photo Gallery)
Allows user to upload photos from Live Photo Gallery directly to www.facebook.com

Windows Live Essentials Windows Live Call
Allows users to make PC-to-PC and PC-to-phone voice and video calls

Windows Live Family Safety
Software for controlling and monitoring online activities of children

Windows Live Mail
E-mail client successor to outlook and windows mail; includes Calendar, Contacts, Feeds, Newsgroups

Windows Live Messenger
Instant Messaging, calling, and video chat program

Windows Live Photo Gallery
Photo-management software

Windows Live Writer
Blog-publishing software

Microsoft Office Live Add-In
Software allowing MS office programs to save files to and access files from a shared online workspace

Windows Live Sync
File-synchronization program

Windows Live Movie Maker
Movie-making software

Windows Live Toolbar
Web browser toolbar to facilitate connection with Windows Live

[cloudmatt]

all fairness sounds like the same pile that comes on a mac just with out all the i-crap. least it's not wildtangent bigfish popcap hp compaq dell etc. like comes packed on the alternative. not to mention most of that stuff comes packed in as standard parts of windows anyway.

[Seaspray0]

Bing has 3D maps now? I didn't know. Will the zune software synch with other mp3 players or only the zune?

[Vegaman_Dan]

@Jammitt:

You know what, I don't think anyone has ever missed your business.

@Seaspray:

I don't know if the Zune software will sync with other players or not. iTunes won't, so it could be very similar there. However there's always third party companies like Red Chair that make synch software for all the popular players.

[sparrowhyperion]

Man the Linux and Mac fanboys are out in force today. Jammit seems to be posting roughly the same moronic post in multiple articles. Get a life people!

[tenbosch]

I was thinking the same thing. Seems they just cut and paste the same anti-MS comments over and over again. It would be best for everyone else to just ignore the comments and not reply. They'd eventually go away.

What's funny to me is that for hating something so much, they're fascinated with reading the articles and somehow finding time and the strong desire to comment.

[Proudly typed on a Windows 7 PC]

[Seaspray0]

That's because they are afraid. Very afraid. Nobody is paying attention to their smear tactics anymore and they are venting their frustration that the OS they like isn't in the limelight.

[Everlovin G]

@tenbosch

"It would be best for everyone else to just ignore the comments and not reply. They'd eventually go away."

HILARIOUS. Don't do as I do, do as I say. "People who live in glass house," 'tenbosch', shouldn't post idiotic comments.

[Vegaman_Dan]

Give them their fun. It's times like this that a person who uses an alternative operating system could approach the release of a new OS from Apple or Microsoft in a couple of ways:

1) Calmly and respectfully state why you feel that your choice of operating system may be better based upon the merits of the system, its history, support and service, as well as usability. Make a good argument that people can follow clearly and reply to comments in a polite and professional manner.

2) Stand on a mailbox on the street, shouting out at random people, hurling insults at their choice of operating system or products, mocking them with names like "BhumPhuk OS", "Orifice 07", and claiming to be the creator of the term "crapware". Don't talk about your own product's benefits or offerings, but instead hound on your competition with nonsense and belligerant rantings best suited to a slobbering madman best locked up for their own protection.

Now I wonder which of those two examples would have a better chance of convincing someone to switch to their preferred OS? Jammit has chosen the second option and we can see how well that is working.

[shycelticwitch]

@ Seaspray... your comment reminded me of something I heard in the hallway at my daughter's middle school. Immature and hardly intelligent. Your troll slip is showing.

[zyxxy]

@shy_troll_troll_troll_troll

lol... don't you witch you had something more intelligent to say?

[tektaktyks]

omg crapple boys are so silly.

[Vegaman_Dan]

It's not limited to any one group. Trolls are trolls regardless of their affiliation. They simple don't like it when someone else is in the spotlight for attention and do what they can to try to take it back.

[Dust_Puppy]

Wow. I'm just going to copy my usual "You people are nuts" response and paste it . . . grow up, everyone.

Microsoft doesn't need an image overhaul, it needs to stop acting like the cable and telephone companies :/

Free ideas for the MS Store:
1) Subsidize good hardware for improved image (maybe IBM business desktops for DELL prices)
2) Sell dual-boot Linux/Windows machines

Honestly, the first company that takes apple computers, sells them as dual-boot windows/mac with true support on both sides will make billions of dollars . . .

[Renegade Knight]

#1 has potential. Run a QC program so QUALITY Windows computers are the ones sold in the MS store regardless of who makes them. Make that a badge of distinction. A lot of windows computers are crap warmed over with 7.

[Seaspray0]

OMG! An intelligent rebuttal! One that actually has ideas and even thinks outside of the box. One that actually spells microsoft as microsoft or MS. What to do? One day, dust puppy. One day I'll get you for this.

[deniceels]

I believe most linux distros can install on a PC without any emulators and dual-boot and if Microsoft have to do that, which distro should they choose to package it with?

Furthermore, can an Apple system install Linux (if it's only Yellow dog Linux) without any emulators?

[dbloyd]

I wonder if the PC vs Mac debate will continue for the next thousand years. Someone should write a book on it.

[ML6345]

Remember this: http://news.cnet.com/2100-1001-202143.html

[Canok]

This blog never fail to crack me up.

Keep it up guys.

[fhinner]

Great the new MS Shop, but like always it falls short at 60%. So I went to the notebook section specified a 17" - 19" Display, 500-650GB HD, 2.8Ghz - 3 Ghz processor and 7 GB (why can I not specify 8....well) and did not limit the price range. Result = Nothing found to meet your criteria.

Background I have a 17" unibody with 3.06Ghz, 500GB-HD, 8GB memory. So why on gods green earth would you let me select these values if you don't have an offer? I know the MS fans will say....but these values are valid for desktop boxes. My answer, YES, but if you offer these selection criteria in the notebook sections what good does that do me? I give a 8 for effort and a 1 for execution (on a scale of 10).

[app_addict_89]

I like this.
One of the reasons why Apple does so well is because they make both their hardware and OS.
Since Microsoft doesn't actually make the computer, having the company pick out specific ones that work well with the OS is a great idea.
When I first used Window's Vista on my old Dell Inspirion, it was horrible.
I didn't get to use the amazing features (i.e. aero) properly because the hardware wasn't powerful enough to handle the power.

[xanthorp]

Just went to the Microsoft 'store' and tried to buy a PC. Clicked add to cart and got: "Sorry, the page you are looking for cannot be found." Nice Job!

[deepen05]

wow, microsoft just ripped apple a new one with this store. I opened both the Apple Store and the Microsoft Store in side-by-side windows (thanks to Windows 7), and they look similar in so many ways. Nice Job by Microsoft, looks they learned from the best at marketing (Apple) and are moving in the right direction..