What do you mean that BBUY can't get its' "operational act together"? Please explain.

I don't see the Microsoft store as being successful. Is the MSFT store designed to turn a profit or is it a marketing expense?

I don't see it turning a profit but it could be quite successful as a money losing but brand building operation.

Color me skeptical about the Guru bar. The MO in the PC world is to have the PC manufacter blame problem on Windows and Microsoft blame the problem on the PC manufacturer with the consumer not getting their problem fixed. Will people get their PCs fixed for free at the Guru bar? Will they even be able to fix real problems?

The other problem is what will be sold. Besides the XBOX and MSFT branded accessories what else will be sold? PCs? If so, are they going to be MSRP (low sales because everybody else discounts) or price competitive (howls of protest from the competition)?

Microsoft also has its toes in things, for better or worse, that Apple does not. Xbox, Sync, gaming keyboards/mice (which Apple does make, just not of the gaming variety), PC/Mac gaming accessories.

But I think the comparison here isn't so much with Apple, but a retail store. Apple makes hardware, and the key to an Apple store experience is that you can go and have a Mac demoed for you by an Apple expert, have someone show you what makes a Mac different and in the eyes of Apple, better. The Apple experts are what makes the experience different than retail. Microsoft doesn't make hardware, so the problem is getting people into a MS store as opposed to just going to Best Buy. Sure Apple sells things other than proprietary items, and sure other retailers sell Apple products, but it's Apple's unique blend of making their own hardware AND software AND specific training of their employees. Microsoft doesn't make your computer, just the OS that runs on it, so they lose that all-encompassing experience.

MS can pull this off, but they'll need to provide a unique experience to the shopper to do so.

You wrote "it would be foolish to overlook one simple fact: Microsoft is what it is. It's enormous. It's dominant. The success of its competitors is measured in single digits of market share captured at best."

It's dominant where? OSes and business suite software. Those businesses were started a LONG time ago. There are plenty of reasons why they became dominant in those industries, some of them illegal. Now, how does that apply any better than using any of their more recent forays in new business ventures to their store venture? It doesn't. MS may be dominant in OSes and business suite software, but where is it in mobile OSes? Where is it in gaming hardware? Where is it in HTPCs? Where is it in touchscreen devices? Where is it in music players? Where is it in music stores? Where is it in search? There's way more recent business ventures that have not been dominating than have been.

And, every time MS enters a new business venture, people like yourself point out that MS is huge, dominant and in for the long haul, and so they shouldn't be counted out. Okay, we're still waiting for another dominating success more than a decade old.

There are many more reasons why MS will fail. The foundation is Apple always had its fancore and needed a place to tell its story on its terms. It was not a major launch - a few stores but it was in high traffic areas and a showcase. THose who thought it would fail were frankly, idiots (as you point out). Merely citing historical reasons it would fail was idiotic (Gateway stores didn't work, etc, etc ...) just as its dumb now to say it will work because it worked for Apple. But as others point out, the other key component is that Apple makes the software & hardware so the genius barwas genius AND they pretty much have to answer and help you ... for MS? Here are TEN REASONS WHY THE MS STORES WILL FAIL:

10) Their genius bar will really never say - it's the hardware, not our fault.

09) Apple users have to spend ZERO time with viruses - will MS genius employees really accept a PC with literally thousands to viruses to clean out?

08) Apple stores sell products that don't really compete with its third party manufacturers other than cabling and some accessories - MS going to feature and SERVICE EVERY PC made today or will they favor certain brands? How about every WIN phone?

07) Apple stores serve to demonstrate then the then new iphoto, imovie & itunes - what is MS going to demonstrate? Powerpoint? Word?

06) Apple's average selling price of every computer is around $1,500 (industry data) while a PC is around $500 and falling - of which MS makes about $25 for every OEM Windows copy ... so while Apple's purpose of the stores was to sell more FULL PRICE hardware for thousands of dollars - is MS' goal to make $25 per transaction (not to mention holding OTHER company's inventory) or $10 per Xbox sold (the avearge margin) or a $10 on a Zune?

05) Ms of course will be pushing WIN7 and while it's gotten nice reviews, how many people will really pay $299 for a full retail version when they can buy a Pc with it loaded on for $499?

04) The main difference is Apple & mac is a prestige brand while MS has diluted its brands (Windows - decent 'free' OS, MSN - do not want, MSN search - do not want, Zune - do not want, Xbox - 55% fail rate?)

03) MS has had ZERO consumer successes sice 1998 - just look at Bing - $6 billion in search R&D, $80 million ad campaign for a FREE item and consumers do not want it (losing market share already).

02) While Apple has launched 4 MULTI-BILLION revenue streams in 8 years (ipod, iphone, itunes & retail), MS has created only more BILLION DOLLAR sinkholes - Xbox ($15 BILLION in red), MSN search, Zune, WINCE-WinMobile, etc, etc ... they lost $700 million on the internet last year - even AOL made money on the internet.

01) MS, Steve Ballmer could care less about shareholders - profit - who cares - but the Windows revenue streaming will drive up. Sure, OEM sales at $25 per Pc will still go on but full retail price - not happening? Server revenue will be fine but everything else is a sinkhole of shareholder money.

'Apple stores serve to demonstrate then the then new iphoto, imovie & itunes - what is MS going to demonstrate? Powerpoint? Word?'

I dunno maybe
sync, surface, Zune, XBox, Courier, Photosynth, PC Games, Bing Maps, Media Center

Or maybe a huge clear cube with Billions of Dollars in it, I would go look at it!

Thomas thats a good one...wait..are you serious?