Last week Microsoft announced that it was closing its retail store presence and Mixer, it’s game stream service. The timing is probably related to the end of the Microsoft financial year on 30th June 2020 more than any deep sense of timing.
Both of these closures are heavily focussed in the consumer market. Retail stores are normally for people to buy products and Mixer was acquired to provide a service for gamers. Microsoft has spent recent years focussing on cloud based business services rather than everyday consumers so these areas of its business were outliers.
Retail stores were primarily in the USA with just a small number at “flagship locations”. Most notably London, which opened in 2019. The flagship locations are going to continue as “experience centres”. I am assuming that this will mean no actual products are going to be sold but rather as places to get the Microsoft brand on display.
Mixer has struggled in the streaming and esports space. The market leader is Twitch, owned by Amazon, and both Google and Facebook have a presence. Microsoft spent millions on attracting high profile streamers but could not make it work.
Microsoft profits continue to soar with its business customers and, other than Xbox gaming, it has failed time and time again to create attractive consumer offers.
No good news in these announcements.