https://www.techpowerup.com/269079/microsoft-moves-to-permanently-close-physical-shops
 
Microsoft has decided to revamp their customer interaction priorities. The company has recently announced they will be closing off all Microsoft physical stores and doubling down on its digital storefronts - the company is looking to start offering new services such as one-on-one videochats, where customers can converse with Microsoft employees when making a purchase - effectively digitizing one of the salient aspects of brick-and-mortar stores. Stores which have been closed since March this year due to the Covid-19 pandemic.

The decision rolls back o Microsoft's continued work on deploying physical spaces where its products can be admired, touched, and tested by prospective buyers. It looked like Microsoft was looking to recreate the Apple Store experience - adding a more premium, more personal touch to their products. However, physical stores are both more expensive to upkeep and vulnerable to more liabilities than digital-only storefronts, and it seems Microsoft has decided the stores just weren't cutting, whether financially or in brand image. No mention on layoffs was made by Microsoft in the announcement, so it seems that most of these workers will be moving on to other endeavors inside the company - likely some of them to the aforementioned 1:1 digital shop customer service. Just another step in an increasingly digital world. The closing of Microsoft Store physical locations will result in a pre-tax charge of approximately $450M, or $0.05 per share, to be recorded in the current quarter ending June 30, 2020.
 
Personally I always thought that Microsoft having a physical store wasn't a good idea

Microsoft had physical stores? I have been to at least a dozen states; never saw a Microsoft store. Won't be missed.

ty_ger07
Microsoft had physical stores? I have been to at least a dozen states; never saw a Microsoft store. Won't be missed.

I was thinking the same thing.
 

kougar

ty_ger07
Microsoft had physical stores? I have been to at least a dozen states; never saw a Microsoft store. Won't be missed.

Sure, they have (or I guess had) a store across from the Apple store here. They usually placed them next to the Apple locations. 
 
But yeah, with Microsoft not emphasizing hardware sales the stores never made sense to me. The last good mouse they made was 15 years ago, yet the only mice they make today are the same ones they made 20 years ago with dark plastic instead of beige. 

Microsoft did for a time have some interesting mice like the Touchmouse, the Arc Mouse and the Wedge Mouse. All of those did something interesting.

Hoggle
 
 
Microsoft did for a time have some interesting mice like the Touchmouse, the Arc Mouse and the Wedge Mouse. All of those did something interesting.

They really did. And the intellimouse 3 was pretty solid in its own right. But upper management never got behind pushing hardware so its hardware just languished and eventually faded away, long enough that Logitech saw the market was there for it and created their own versions of everything.

They must have come to the realization that they do not make additional revenue through upfront advertising and promotions at physical locations where they incur additional expenses due to additional operating costs.  All they need is to continue cornering consumers into helplessly having to purchase their products due to no other options such as Windows 10 for DX12 only games.  When the consumer has no other reasonable option, it is almost effortless revenue even if there are annoying flaws or inconveniences.