Microsoft will open its first retail stores in malls in Mission Viejo, Calif., and Scottsdale, Ariz., according to the company, and -- as vowed -- they will be right near stores run by competitor Apple.
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The move will be Microsoft's first effort to open its own retail stores since it opened an 8,500-square-foot retail store in San Francisco in 1999. That store closed within two years.
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And the new stores will be opening in a terrible retail environment in the midst of the worst economic downturn since the Great Depression.
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But Microsoft may have more success this time around given that it has more retail expertise within its executive ranks, including Apple's former real estate chief, George Blankenship, who is now working as a consultant for Microsoft. In February, Microsoft hired former Wal-Mart executive David Porter to lead its retail store effort.
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And Microsoft COO Kevin Turner joined the company from Wal-Mart. In a take-no-prisoners keynote speech at Microsoft's Worldwide Partner Conference two weeks ago, Turner vowed to compete head-to-head with Apple by opening Microsoft stores right next to Apple stores. "We're in the game for the long term," he said.
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The retail stores are expected to offer Microsoft products ranging from Xbox 360 game consoles and Zune media players to Microsoft software, as well as non-Microsoft products, such as mobile devices and laptop computers.