Microsoft announced its first two retail store locations will be in California and Arizona, with the company aiming to open both stores before the end of the year.
Analysts rightfully believe Microsoft hopes to compete with the successful Apple stores, which continually pull in a large amount of foot traffic.
The company has signed leases in Mission Viejo, California and Scottsdale, Arizona. The Mission Viejo location will compete with an Apple location close by, though Apple doesn't have a presence in Scottsdale. Look for the company to also create at least one store in the Seattle area, as Microsoft is based in Redmond.

The two stores will offer notebooks powered by Windows, Zune MP3 players, and Xbox 360 hardware and video games. Instead of trying to replace traditional electronic retailers, Microsoft hopes to teach classes and allow customers to customize their purchases.
Microsoft, however, still hasn't finalized the designs of its stores, but offering tech classes and help from experts could help attract customers. It's possible, depending on feedback from customers, that other services will be offered.
Microsoft obviously wants to turn a profit, but they don't expect any immediate miracles. I'm curious to see how the stores do -- and how many Microsoft aims to open -- as Apple has an almost cult-like following that Microsoft simply doesn't have.
The marketing campaign for the new stores should also prove to be interesting, because they'll have to create better TV and Internet advertising than their past few attempts.















