Microsoft announces first two retail store locations

Seattle Microsoft Corp. announced on Tuesday it will open its first two freestanding retail stores this fall, in Arizona and California.

The software giant said it signed leases at The Shops at Mission Viejo, in Mission Viejo, Calif., and Scottsdale Fashion Square, in Scottsdale, Ariz., where it will go head-to-head with its arch rival, Apple. The California site does not have a competing Apple store.

Microsoft picked the locations because they are "hot markets," with the right demographics, said Kim Stocks, a corporate communications director at the company, according to the Associated Press. She said the stores will sell laptops in addition to Microsoft and third-party software, Zunes, and Xbox 360 games and consoles.

The fall opening of the stores comes at an opportune time: Microsoft will release Windows 7 on Oct. 22.

Last week, a document, reportedly leaked, surfaced online (on gizmodo.com) showing rough concept sketches for a Microsoft store. The environment appeared sleek and futuristic, and included an “answer bar” where shoppers can get help from experts. The proposed format also included a space for birthday parties. Microsoft said the sketches were early ideas and that no final decisions had been made with regard to its designs.

In February, Microsoft hired David Porter, a 25-year Wal-Mart veteran to run its retail effort. But the company has released few details about its retail initiative since that time.