Microsoft released the consumer version of Office 2010 to retail a few weeks ago, and according to NPD’s Weekly Tracking Service the results are mixed. Units and dollars are down from Office 2007’s initial two weeks of sales but are in line, and in fact slightly ahead of, sales trends of Office 2007 so far this year. This fact highlights the challenges for Microsoft going forward for Office. A strong product launched into a saturated market faces considerable headwinds. Even so, sales of Office 2010 in general have to be characterized as a bit disappointing during the first two weeks.
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In last week’s frenzy of iPad news it is entirely likely many folks missed the revelation that Microsoft is looking for employees for two new stores to open later this year. New stores do not mean that the concept has proven totally successful, just that Microsoft has seen enough to warrant further experimentation. If you’ve ever been involved in the rollout of retail stores you know that it is hard to keep changing the in-store experience on the fly so, to Microsoft’s credit, they have gone slow in expansion, and of course they can go slow since this is not their primary business, likely gathering up all they learned from their first stores and hoping to improve on the experience in the next two.
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As Windows 7 begins its assault on the consumer retail marketplace today, so far, despite a few questionable decisions, the marketing, merchandising, and retail preparation appear to be clicking on all cylinders. Since I’m not a product reviewer I can’t comment on how “insanely great” Windows 7 might be, but I can give Microsoft kudos for the preparation and first spate of advertising. Let’s look at 3 buckets.
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Ok so I butchered the title, I know those are two different movies but both are relevant when thinking about Microsoft’s series of Laptop Hunter ads. Clearly this ad has created a new hope among the Windows faithful/ecosystem that Microsoft is capable of defending itself against the encroachments in perception, recognition and market share that Apple has made in the past few years.
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Yesterday’s surprise announcement that Microsoft hired a retailing professional to help create and manage a chain of Microsoft-focused stores probably isn’t such a surprise. A number of recent activities in Redmond, from the opening of the Windows Experience store to the placement of Windows Gurus within U.S. retail stores, and even the Windows Velocity program’s, PCs tuned by Microsoft, were signposts on a road to more consumer-level engagement.
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Software | Stephen Baker, Vice President, Industry Analysis | 
July 13, 2010 3:22 pm | 
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