Microsoft

The "Microsoft Signature" PCs that are being sold at Microsoft's retail and online stores contain a bunch of extra Windows Live software, but also feature something rarely found on a PC--a clean desktop.

(Credit: Microsoft)

Although Microsoft isn't making its own PCs, the software maker is taking an active role in customizing just what goes on the computers it sells through its online and retail stores.

In its new role as PC retailer, Microsoft is loading computers with what it's calling its Microsoft Signature experience--a collection of Microsoft products, including the complete Windows Live suite, Security Essentials antivirus product, Zune jukebox, and Bing 3D Maps software, as well as Adobe's Flash and Acrobat Reader products. Internet Explorer 8 is the browser, with Bing as its default search provider.

(Credit: Graphic by Ina Fried/CNET News)

The computers are being sold at Microsoft's two retail stores--the Scottsdale, Ariz., store that opened last week and the Mission Viejo, Calif., outlet that is opening later on Thursday. The software giant is also selling PCs throughout the U.S. via its online Microsoft Store.

The goal of the Signature effort is to give customers what Microsoft feels is the best software experience they can have on a PC.

"Signature gives them a PC that is ready to run," Microsoft retail unit chief technology strategist Kevin Eagan said in an interview. "We think we're really unlocking the potential of Windows 7."

Microsoft isn't completely deciding what goes on the system. Computer makers can also add software that takes advantage of particular hardware features, but it's not allowing any trialware or "crapware."

"Much like other retailers would define (what goes on their PCs), we do the same working closely with our (computer maker) partners," Eagan said.

As part of the in-store experience, Microsoft staffers will also help customers install other software they might want--even competitor's products, such as Apple's iTunes. They can also change their browser or default search provider before they leave the store, Eagan said.

"We want to give customers what they are asking for, so they leave store 100 percent satisfied," Eagan said.

Eagan said Microsoft is just taking advantage of the customization options that other retailers also have available to them and said the company doesn't anticipate any regulatory concerns.

"We're absolutely confident that what we've done is added another choice for customers," he said. "We think expanded choice is good for customers."

Those who already have a PC, but live near one of Microsoft's stores, can bring in their PC and have the Microsoft Security Essentials software added at no charge.

(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.

Microsoft has been keeping rather mum on what to expect from its new retail stores, but sources tell CNET News to expect lots of flashy monitors, fancy PCs, Surface table-tops, as well as a giant display.

The outlets, which will be called simply the "Microsoft Store," closely resemble the mock-ups that leaked earlier this year, according to one source. They also borrow some of their design cues from Apple's retail outlets, including an "answer bar" that seems to closely mimic Apple's Genius Bar.

The stores will sell PCs from some of the leading brands, showcasing what Microsoft sees as some of the best models Windows has to offer, with mostly high-end models such as Dell's Adamo. However, there will be PCs in all price ranges, including Netbooks, sources said.

In addition to PCs, there will also be sections for other Microsoft products such as Windows Mobile and Xbox.

Microsoft confirmed its plans to enter the retail market earlier this year, hiring Wal-Mart Stores veteran David Porter to lead the effort. The software maker later said it would open two stores this fall, with more to come next year. The first two locations are in Scottsdale, Ariz., and Mission Viejo, Calif., and are both set to open this month, sources said.

In Mission Viejo, Microsoft will be in the same complex as one of Apple's stores.

The Microsoft outlets won't have cash registers, instead using handheld devices to ring up customers. There will also be lots of ways to personalize various products, according to sources.

Microsoft also has an online Microsoft Store that sells directly to consumers and is also opening a "Windows Cafe" in Paris on October 22--the same day that Windows 7 launches.

A Microsoft representative declined to comment on the retail stores beyond saying that the stores are on track to open on schedule.

Microsoft confirmed Wednesday that it plans to open a "Windows Cafe" in Paris where people will be able to try out the latest from Redmond while drinking a cup of coffee.

The cafe will open on Oct. 22--the day that Windows 7 launches, Microsoft said.

"This initiative expresses our intention to meet with the general public and show the new Windows experiences on PC, mobile and on the Internet," a Microsoft representative said in a statement to CNET News. "People will be able to discover Windows 7, the Windows phones and the Windows Live services."

Microsoft's statement comes after photos of the cafe appeared on a French technology Web site.

In the United States, Microsoft has announced plans to open a network of retail stores--with the first two opening this fall. More are slated to open next year.

For now, the Paris location is the only cafe planned, Microsoft said.

Others chimed in on Wednesday with some interesting tidbits. TechCrunch observes that, ahead of the opening, the cafe is already offering free Wi-Fi to those on the sidewalk, while Silicon Alley Insider notes that the location was previously home to an eatery called Wet Willie's.

Microsoft plans to open two of its first retail locations in Scottsdale, Ariz., and Mission Viejo, Calif., CNET News has learned.

The software maker confirmed on Tuesday that it has signed leases in both spots as part of an effort to launch its first retail outlets this fall.

"Over a billion people use our products every day yet we don't always have a way to directly connect with them," said Microsoft spokeswoman Kim Stocks. "We see the physical stores, as well as a consistent online experience, helping that."

The Orange County, Calif., store is in a mall that already houses an Apple retail store. Microsoft Chief Operating Officer Kevin Turner said at this month's Worldwide Partner Conference that some of the locations would be right near Apple stores.

The first stores' fall opening comes at an opportune time for Microsoft, which is launching Windows 7 on October 22.

"We're all very excited at Microsoft that we have a huge wave of innovation on the horizon," Stocks said. "The stores are an opportunity absolutely to share with customers those technologies."

Stocks said that Microsoft heard from customers that they wanted a simpler way to buy PCs.

"Our customers have told us three things--they want a more simplified buying option for PCs and devices, great technology, and competitive prices and a knowledgeable staff."

Over time, Microsoft plans to open stores outside the U.S., but the company hasn't said when that will occur. "The goal is to go global," Stocks said. "We are not sharing specific locations beyond the two we are announcing today."

As for products, Stocks said there will be products "in the areas of laptops, mobility gaming, and software." That will include Microsoft software and hardware, of course, as well as brand-name PCs and software from other companies.

On Friday, some of Microsoft's early store plans were leaked onto the Web. In February, Microsoft confirmed it had hired Wal-Mart veteran David Porter to lead up an effort to open up Microsoft-branded retail stores.

Microsoft declined to confirm the details of what will be in the stores--including a rumored "answer bar"--although Stocks did say that the stores would have both sales and support staff.

Microsoft confirmed late on Friday that store plans posted on Gizmodo are genuine, but represent the company's early thinking and that no final decisions have been made on how the company's retail stores will look when the first ones open this fall.

The designs, which include a giant video wall, Surface computers, and an "answer bar" were leaked to the gadget site, which wrote about them earlier Friday.

"As a part of our process in briefing creative agencies, we shared some early prototypes and concepts of our retail store plans," a Microsoft representative said in a statement to CNET News. "No final decisions have been made. As we previously announced, we are on track to open retail stores this fall.

As I noted last week, Microsoft plans to start with just a few stores this year with more to open in 2010. At least some of those locations will be in close proximity to Apple stores.

Microsoft first announced its plan to enter the retail arena in February, when it hired David Porter, a Wal-Mart veteran.

At last week's Worldwide Partner Conference in New Orleans, Microsoft Chief Operating Officer Kevin Turner (also a Wal-Mart veteran) said to "stay tuned" for more news on the retail front.

"We're going to have some retail stores opened up that are opened up right next door to Apple stores this fall," he said. "Stay tuned, just stay tuned."

Microsoft confirmed on Wednesday that it is planning to open its first stores this fall, with at least some of the locations likely to be right near an Apple store.

"As we progress on our retail strategy there will be scenarios where we have stores in proximity to Apple," a representative told CNET News. "We are on track to open stores in the fall time frame."

The fall timing is not surprising. One would assume Microsoft would want to have the stores open in time for Windows 7's October 22 retail launch and for the holiday selling season.

Turner

(Credit: Microsoft)

I'm hearing that Microsoft will open a few stores this fall, with more coming in 2010.

Microsoft first announced its plan to enter the retail arena in February, when it hired David Porter, a Wal-Mart veteran.

Speaking at the Worldwide Partner Conference in New Orleans on Wednesday, Microsoft Chief Operating Officer Kevin Turner told people to "stay tuned" for more news on the retail front.

"And stay tuned, because we're going to have some retail stores opened up that are opened up right next door to Apple stores this fall," he said. "Stay tuned, just stay tuned."

Turner promised partners that the company would share what it is learning with other stores.

"Every single thing we learn in those Microsoft stores that we put on the street we're going to share that openly and transparently with all of our retail partners so that they can do the exact same thing," Turner said. "And we're going to get that customer feedback directly. We're in the game for the long-term here."

Turner, himself a former Wal-Mart exec, noted he has some experience in this area. "And I know something about retail, and we've hired an incredible team to do an incredible job on retail."

The software maker has also opened an online software store that sells products directly to customers.

Last fall, Microsoft set up a "retail experience center" in Redmond. (See video below--Silverlight required, however.) However, at the time a Microsoft executive told the Seattle Post-Intelligencer that the company wasn't going to open its own stores.

In the beginning of the decade, Microsoft had one retail outlet--at the San Francisco Metreon mall. However, it closed that location in November 2001. It had been rumored to be eyeing a Times Square location back in 2005.

Microsoft Entertainment unit president Robbie Bach fielded some tough questions on Friday.

Then, after that go-around with the crowd of high schoolers, Bach signed up for round two and spoke with a few Seattle-area reporters. In the follow-up with the reporters, Bach discussed upcoming updates to Windows Mobile as well as the company's just-announced move into retail and its Zune efforts.

Robbie Bach, president of Microsoft's Entertainment & Devices Division

(Credit: Microsoft)

I wasn't there, but enjoyed the team coverage from TechFlash's Todd Bishop, The Seattle Times' Ben Romano, and the Seattle Post-Intelligencer's Joe Tartikoff.

Bach told the reporters that the move into retail, unlike Apple's, is more about brand-building than distribution.

"Apple's approach was about distribution. People forget that when they entered their stores...they didn't have distribution for Macintoshes, so they created their own distribution,," Bach said, according to the The Seattle Times. "We have plenty of distribution. These stores for us are about building our connection to customers, about building our brand presence and about reaching out and understanding what works and what improves the selling experience."

As for the Zune, Bach wouldn't talk specifics of whether touch is coming to the new players (expected this fall), but he did talk about the overall importance of the touch interface throughout Microsoft.

"Independent of specific plans for any specific product, you should just assume over time that that's going to become part of the products that we produce," Back said, again according to the Times. "And, you know, specific timing and all those things, I'll leave aside, but it is a huge trend. And once you have something like touch or voice to interact with, you wonder why you did it the old way."

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.