Microsoft eyes retail space in Times Square

[AppleInsider]

Faced with the undeniable success of Apple's retail store strategy, Microsoft is reportedly prepping its own retail boutiques, the first of which may turn up in the heart of New York City.

A report published Monday by* The New York Post indicates that Microsoft is hunting for a location in world-famous Times Square for its first store. The company is said to be seeking a large space to showcase its products, which range from the Windows franchise to the gaming behemoth Xbox.

But Microsoft isn't looking to rent just any Times Square space, according to the report. Microsoft is said to be eyeing a location at 1, Times Square, the building famed as the backdrop to the New Year's Eve celebrations, including the New Year's Eve ball drop.

What is unclear is whether the company's initiative to secure a New York store is a precursor to a larger strategy for a retail presence. In the late 1990s, the software giant launched MicrosoftSF, a major San Francisco outfit to showcase its latest products. The store closed shop a mere three years later.

If the reports are accurate, Microsoft is again pinning its hopes on a high-visibility storefront -- this time with the aim of regaining public mind-share now thought to have been captured by Apple. "They are not going to let Apple take that environment," Marshal Cohen, chief analyst at NPD Group, told Post reporter Louise Kramer.

Apple currently operates 120 retail stores worldwide, and intends to close out fiscal 2005 with 125 stores. The company will soon operate four locations in New York City, as evidenced by job listings and retail sources.

To much fanfare, in 2002 Apple launched its first New York City location in downtown trendy SoHo. The company now plans an extensive new outfit in Midtown Manhattan that sources say will upstage SoHo as Apple's premier New York flagship location. The company also holds plans for stores in the New York City borough of Staten Island, as well as the Flatiron district of Manhattan -- both of which could* open later this year.

"The Apple store has succeeded beyond their wildest dreams," said Marianne Wilson, senior editor of Chain Store Age to the The Post.

Most notably, Apple's stores reached $1 billion in sales faster than any other retail chain in history. Microsoft is likely to try and duplicate that success.

[ View this article at AppleInsider.com ]

[Matthew Yohe]

What do they have to sell?

[J@ffa]

Wow! Not to state the obvious or anything, but 1 Times Square is going to cost an absolute fortune. A bidding war would be a good laugh! Anyone round here have any experience with property of that sort? Surely tens of millions, perhaps more?

[J@ffa]

Originally posted by Matthew Yohe
What do they have to sell?

Virus protection?

[Anders]

Originally posted by Matthew Yohe
What do they have to sell?

Exactly what I thought. Cardboard boxes? Thats something UPS or USPS delivers, not something you buy at a chic store.

[wymer100]

I guess they'd sell boxed copies of MS software and keyboards/mice/etc. They'll also sell XBoxes. Seems kind of funny that they'd be selling all those xboxes at a loss in a place that costs that kind of cash. Anyway, it seems kind of stupid to go to Times Square to get an xbox when you can get one online or at any electronics store.

I've seem some interesting thoughts on other message boards (and my own) about this store:

1.) Could you imagine the line for the "Genus Bar"?
2.) Would you have to leave through the "entrance" door?
3.) Would you get a cold virus if you stayed inside for more than 20 minutes?
4.) Would the cash registers, lights, elevators, etc. just stop working at random times?
5.) Would the windows work?
6.) Would it attempt look like the SOHO Apple store, only crappier?

[Anders]

Originally posted by wymer100

1.) Could you imagine the line for the "Genus Bar"?
2.) Would you have to leave through the "entrance" door?
3.) Would you get a cold virus if you stayed inside for more than 20 minutes?
4.) Would the cash registers, lights, elevators, etc. just stop working at random times?
5.) Would the windows work?

Might inspire some to do some redecoration work.

[hypoluxa]

Could MS be any more of a blatant unoriginal copy cat? When will they not copy Apple?? geesh!

[spylaw4]

Too little! Too late!

Hmm - does that remind you of a certain steer yet to be born?

[MikeMac]

Microsoft needs a new marketing department.

Do they really expect people to visit this "store" in droves? You can get all of their consumer products at your local Staples, CompUSA, Best Buy, etc. so I don't see why you would forego one of those retailers (not to mention buying online) and make a trip to "The Microsoft Store."

[bdkennedy1]

They will fail again. The reason people go to the Apple store is because Apple has products people WANT. Plus why would anyone want to visit a Microsoft store to pay premium price for Windows XP or keyboard or computer when you can just run to Best Buy or Circuit City or any of the other dozens of places.

[ThinkDifferent]

Just seems like typical Microsoft...

[melgross]

Guys, this is for advertising. They aren't doing it to make a big profit. Look where they are trying to rent. This is like putting a billboard up in Times Square.

MS can afford this. They are much bigger than they were in the early '90's when Apple had twice the sales they did. They have $38 billion in the bank. It would have been more than 60 but they gave a good chunk to stockholders last year.

Speculation that they will open a chain of stores is based on nothing. Major spots in a few cities for publicity is something else.

If they do sell products, rather than have a showcase as Sony and other companies have in various hi-end locations in NYC, they could sell products from partners as well, just as Apple does.

[the cool gut]

Originally posted by MikeMac
Microsoft needs a new marketing department.

Do they really expect people to visit this "store" in droves? You can get all of their consumer products at your local Staples, CompUSA, Best Buy, etc. so I don't see why you would forego one of those retailers (not to mention buying online) and make a trip to "The Microsoft Store."

Your forgetting how well Gateway's retail stores did ... oh wait.

[melgross]

Originally posted by the cool gut
Your forgetting how well Gateway's retail stores did ... oh wait.

Gateways stores were losers in every which way. They didn't do due diligence when scouting locations. They didn't even sell product in the beginning. You could configure a machine there - and then take that configuration to a store and buy it.

Again, MS is doing this for publicity, not to start a chain.

[Unbeliever]

Originally posted by hypoluxa
Could MS be any more of a blatant unoriginal copy cat? When will they not copy Apple?? geesh!

Wow!

How didn`t i think of that!?
Since Apple came up with the concept of retail stores everyone who opens a retails store is a damn copycat!


Give me a break man. I love Apple as much as evryone around here but saying MS is a copycat for opening a retail store is just idiotic.

Being a fan is fine. Being a braindead zealot is not.

[Catman4d2]

Also being a lame "SAFE" Macfan is not cool Either...

Where is Gates? i want to smack the Dog Sh*T out of him!!!!!
You want your store where the ball drops?
i`ll show you where the ball drops take a look at these low hangers BYATCH.

Copycat =Crook Windows =suck

[jayhigh]

Originally posted by melgross
Guys, this is for advertising. They aren't doing it to make a big profit. Look where they are trying to rent. This is like putting a billboard up in Times Square.

MS can afford this. They are much bigger than they were in the early '90's when Apple had twice the sales they did. They have $38 billion in the bank. It would have been more than 60 but they gave a good chunk to stockholders last year.

Speculation that they will open a chain of stores is based on nothing. Major spots in a few cities for publicity is something else.

If they do sell products, rather than have a showcase as Sony and other companies have in various hi-end locations in NYC, they could sell products from partners as well, just as Apple does.

Now that's the most realistic reasoning I've read on this subject. If you see somebody being successful with something, why not copy them if it's allowable? Maybe Microsoft has tried to do that too many times and has failed in a few fields, however; you have to remember, the majority of people use Windows as their main OS so they're doing something right.

[wymer100]

Originally posted by jayhigh
the majority of people use Windows as their main OS so they're doing something right.

It's because it runs on cheap machines, and they used monopolistic means to get that kind of marketshare. They were convicted of abusing its monopoly.

The biggest problem for MS right now is that they can't get the public excited about their products anymore. People are just tired of all of the problems with windows. Unless you can excite the public to buy your products, you will have a slow death. I'm not talking that MS is going to close-up shop next year. I'm thinking more about 20 and 50 years from now. The fact that they have a marketing guy running the company is pretty telling.

[melgross]

Originally posted by wymer100
It's because it runs on cheap machines, and they used monopolistic means to get that kind of marketshare. They were convicted of abusing its monopoly.

The biggest problem for MS right now is that they can't get the public excited about their products anymore. People are just tired of all of the problems with windows. Unless you can excite the public to buy your products, you will have a slow death. I'm not talking that MS is going to close-up shop next year. I'm thinking more about 20 and 50 years from now. The fact that they have a marketing guy running the company is pretty telling.

I wouldn't worry about a company that MAY have to close up shop 20 to 50 years from now. MS, to be fair, is by no means on their last legs, even though growth has slowed to about the same as the increase in sales of the industry. That's still 10-15% a year. Most any company of that size would envy that, as well as the 70% or so profit.

[wnurse]

Originally posted by melgross
Guys, this is for advertising. They aren't doing it to make a big profit. Look where they are trying to rent. This is like putting a billboard up in Times Square.

MS can afford this. They are much bigger than they were in the early '90's when Apple had twice the sales they did. They have $38 billion in the bank. It would have been more than 60 but they gave a good chunk to stockholders last year.

Speculation that they will open a chain of stores is based on nothing. Major spots in a few cities for publicity is something else.

If they do sell products, rather than have a showcase as Sony and other companies have in various hi-end locations in NYC, they could sell products from partners as well, just as Apple does.

I agree.. some peole are wondering why would people go to a microsoft store when they can go to best buy or online but the same question can be asked of apple stores. You can get apple products online and you can even buy an ipod at Target, yet people go to apple stores (and these stores are not exactly in the neighborhood). I've never bought anything from an apple store and since 1998, apple computers is all i have bought. The same people that would rather get into their cars to go to an apple store instead of buying their computers online have equivalents on the microsoft side that will go to time square instead of best buy. Micorosft will get some customers. Will it be enough?.. who knows.. it's fun bashing microsoft but i guess we'll all have to wait and see what happens. Like somone noted, microsoft has a lot of money.. and can we please stop sounding the death bell for microsoft.. People who predict the death of microsoft look just as idiotic as those that predicted the death of apple. I thought mac users were supposed to be smarter?. Why are we emulating the idiots who predicted apple death. Maybe some microsoft zealot will start a website detailing the microsoft death count. Please, microsoft is not going anywhere, not in anyone in this forum lifetime.