Appropriately, a web site called Fudzilla is reporting that Microsoft is going to open retail stores.

It’s time for shareholders to weep a little more.

Everytime, Microsoft has a brainstormin’ meeting, it’s more money down the drain:

Let’s buy Yahoo! ($45 BILLION)

Let’s launch a DAP/MP3 Player! (3% marketshare) ($1 BILLION)

XBox – The Xbox division is @$16 BILLION in the hole after 8 years.

MSN – $1.1 BILLION in R&D & a marketing blitz is all we need to get MSN going ($700 million – 2002), 2005 & 2007).

MSN is down to 8.4% (Google at 70%). Nice use of $2 BILLION dollars. Most people lose 50% of their market share in 2 years by not spending any money on a product, only MS can spend $2 BILLION for the same result.

Let’s spend 6 years and $6 BILLION on creating Vista … and of course …
“Microsoft is planning to promote the launch with a $500 million marketing campaign”

The list goes on and on – why? The simple fact is that when consumers have a choice, they do not choose Microsoft. This isn’t some whim. Microsoft worked hard to destroy their credibility as the leading edge of technology from 1995. After that, they simply thought they had everyone else locked down and out and could just rest so they offered products such as OSes riddled with hundreds of thousands of different infections … or me-too products such as PDA’s, watches, Talking Barney’s, video consoles, MP3 player, home networking or MSN and both an ISP & as search … all failures in the sense that they offered nothing new and they are ALL are losing money or losing market share.

In fact, they have become the “dollar-store” of technology. They are only worth buying if it’s rock bottom $399 pricing – why PC makers margins are all falling because of association with MS OS … why bother paying for even a $999 machine when it’s just going to run as well/poorly as a $399 machine?

Hey, if the shareholders don’t care, why should we?

Now, another meeting and another “brilliant” idea without mentioning you-know-who in the meeting.

It is almost laughable how clueless they are.

It would be like the IRS opening retail stores. Come. Mingle. Hang out.

Though this is a good plan for the bullet proof glass industry. You know Microsoft, they’re not just going to open 1 store at a time, that’s no way to spend money fast, if the budget isn’t a $1 BILLION, why bother so I’m sure they’ll sign 20-year leases at 100 locations.

Photo Courtesy of Pacific Bulletproof.com (where I go for my bullet proofing 😉 )

“Sir, I can’t help you, it’s a hardware issue – reformat the drive and then come back … yes, this is bulletproof glass, why do you ask? Have a nice MSN/Live Day!”

So, how exactly are you going to find employees to staff this place?

Who here would like to stand at a desk and answer questions about why ME, 2000, NT, XP or Vista is not functioning correctly?

Who thinks there might just be a few slightly annoyed to raging Windows customers?

Will they be taking red-button-of-death XBox returns and softly announce they’ll get another in 4-6 weeks?

Will they answer why Microsft Plays4Sure WMA is not the same as Zune WMA?

Can they point us to where the Apple store is in the mall?

Microsoft doesn’t really get that consumers don’t really like them. They don’t seem to notice that when consumers have a choice, they don’t buy MS. The OS issue is a heated one but let’s look at some more neutral markets. Look at the home networking gear they tried to sell. While there are some known brands, there are plenty of detractors for #1 & #2 but MS couldn’t even crack that market – why? Because MS poisoned the brand name. The average consumer took a look and decided – NO MORE IN MY HOUSE, DO NOT WANT.

Or using MSN search. It’s 100% FREE and takes 2 seconds to type and bookmark but now down to 8% market share? What does that tell you? That either their search results are poor or that consumers don’t believe their ‘technology’ is any good – either way, bad, bad news for MS.

That is why their retail stores will be a miserable failure as branding because they rank somewhere near the IRS. How often will you step into an IRS store to hang out?

AND at the IRS store, you know if you complain too much, they’ll audit you but aren’t you just going to go into the MS to vent and unload?

Yea, good luck finding employees.

(on the corporate side, they’re doing fine, IT guys made a choice and now are stuck with MS so whatever but when you’re spending your own cash, MS – DO NOT WANT).

Yet again, it proves that they are clueless about their place in the consumer’s mindset.

MS will build a 100 retail palaces because they think they are the king … but MS is really like those local cable ads where the guy wears a crown selling the very ordinary at a huge markup.