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Opinion: Why Microsoft’s Windows 8 App Store May Fail

by - source: Tom's Hardware US

I get it. App stores are in. Apple has the App Store. Google has Android Market. RIM has a store. Even Intel has one.

So it’s not really a surprise that Microsoft says Windows 8 needs its own app store. But simply having an app store is not enough anymore. The Windows Store we have seen so far is not convincing and may go down in flames. Microsoft needs to do better.

Apps, formerly called software or programs, are driving platforms these days. Apps, wrapped into a convenient delivery package, are the magic that Apple and Google learned to use to surround their operating systems with amazing user experiences that transcend the idea of a traditional operating system. If the successes of iOS and Android are any indication, then we can assume that there is at least a chance that massive app support for a new Windows version can help Microsoft to secure its dominant market position. Over time, apps in Windows are a critical feature for Microsoft to connect its desktop, mobile, ultra-mobile and entertainment platforms.

If you look closely, Microsoft has an app opportunity that is greater than the opportunity of any of its rivals. Apps can help Microsoft connect (1) desktop and mobile computers with (2) ultra-mobile (smartphone) computing devices, (3) entertainment and video games (Xbox Live), and (4) servers. Imagine a fabric that unites those four environments, realize Microsoft’s market reach, and it’s clear that Microsoft’s need for an app store is not just a casual idea that some managers had while drinking a couple of beers. The goal must be a support system for all of its platforms. Even Windows Mobile could potentially see the light at the end of the tunnel with a great cross-platform app store experience.

The Good

Microsoft has a few good ideas for the Windows Store. Summarized, there is a more attractive revenue share model (80/20 above $25,000 in sales), a nicely designed app discovery interface that is seamlessly integrated into the Metro UI, a developer contest to spark the development of unique launch apps, discovery integration in Bing, app curation, an opportunity for developers to automatically offer their apps as a trial without writing additional code, as well as optional integration of app discovery in IE10. Microsoft’s pitch is (you may have already noticed it) “easy discovery” of content. Expect an appealing, animated and smooth interface with a conclusive structure that organizes a flood of apps.

The Bad

I don’t think it will be enough for the Windows Store to succeed by default. From a very naïve view, you could even question the need for this store. We have had an app store for Windows for about 15 years (download.com), which will remain a valuable source for software as long as Cnet doesn’t hurt itself with dumb ideas such as a nasty installer routine that delivers code for which you have not asked. If Cnet has been following the trend toward app stores, I am sure that they are working on an app version of download.com for Windows and other platforms already. How much more value than download.com can the Windows Store deliver? Here are three problem areas that could potentially hurt Microsoft.

Developer support

There are many companies that are trying to ascertain how many apps it would take to make an app store successful. The number as well as the quality of apps will be important. Microsoft will have to invest a lot of money into apps to offer a unique appeal for Windows. It needs to court developers to be able to attract consumer interest. Unfortunately, Microsoft’s pitch is not quite as strong as it should be. The company argues that 400 million PCs will be sold next year, which gives the app store tremendous exposure. That is true, but does that exposure translate into sales? No. We learned in recent years that neither user base nor the number of available applications translates into developer value, revenues and actual purchases. We all know that Windows has 90 percent of the market and that most PCs are sold as Windows versions. Highlighting that fact will not persuade additional developers.

The same holds true for the revenue share model: 70/30 under $25,000 in sales and 80/20 above. But, seriously, how many app developers make more than $25,000 on their app? Most apps don’t even reach $5,000. For example, we know that Windows users are less likely to spend money on software than Apple users. A better revenue share is a great idea, but Microsoft should be focusing more on helping developers to market their apps among potentially tens or hundreds of thousands of apps. Visibility is the true problem for most developers today. IE and Bing exposure are great, but probably not enough. There needs to be some innovative ways for small developers to help their app reach consumers. “Easy discovery” is the right path, but every other app store offers that claim as well. If Microsoft can offer much more value here than its rivals, it will win.

Touch

Microsoft explicitly promotes applications designed for the Windows Metro UI for its Windows Store. Let’s think about this one for a moment. Does this make sense? Since Windows 8 is all about the Metro UI, will all Windows 8 PCs be touchscreen PCs? Windows 7 to Windows 8 upgrades will, most likely, not be touchscreen PCs and there may be a good portion of new Windows 8 PCs that won’t have touchscreens either. Subtract all those upgrades and entry-level PCs from the customers accessing the Windows Store. How many of those 400 million PCs next year will, in fact, be aligned with touchscreen Metro apps in the Windows Store? Your guess is as good as any market researcher’s guess at this time, but it is safe to say that it won’t be close to 400 million.

In actuality, how useful is touch on a desktop and a notebook PC? Are you willing to largely replace your mouse with your hand that reaches across the keyboard and taps on a vertical screen that bounces back and forth? Touch on desktop and notebook computers is far from being a slam dunk for Microsoft. It could succeed in the long run, but it may just as easily fail entirely. Given the layout of Metro as well as the closely attached user model of the Windows Store, touch needs to be a complete success to guarantee success for Microsoft. However, touch will not work for all users. It is great on horizontal devices such as tablets, but it is a pain in the neck on notebooks and desktops. If touch fails, Microsoft may have a bigger problem on its hands than they experienced with Vista, as Windows 8’s success, as far as consumer perception is concerned, could live and die with the Metro UI. Enthusiasts may care about under-the-hood changes, such as more efficient memory usage, but I don’t think that the average consumer will care.

Xbox Live

I don’t quite understand why Xbox Live does not have a much more prominent position in platform product marketing these days. Xbox Live should have been a much more powerful component in Windows Mobile, and it is somewhat neglected in Windows 8 previews. We know that it will be integrated in some way, but we have no idea how far the platform integration will reach. If the integration ends with checking your game high-scores and admiring your avatar, it’s not a big deal. However, Xbox Live should be much more integrated, especially if Microsoft moves increasingly in the general entertainment direction.

Microsoft’s entertainment division has the only brand that sparks enthusiasm among its users and is, at this time, the most powerful entertainment platform available. It is a missed opportunity for Microsoft if it does not connect games and entertainment across its platforms. It would be foolish if the company did not specifically engage developers to address Xbox Live that could connect phones, the Xbox 360 and PCs.

Right now, Xbox Live in Windows 8 is clearly under-marketed; it is even more under-marketed as far as the Windows Store is concerned.

Delivery vehicle

Microsoft has been building IE10 to become the engine that will enable access to HTML5 apps and will run them. However, the integration in IE10 is rather limited, and IE10 users have to actively setup an App Store icon in the browser. This can’t be an ideal solution.

As much as Microsoft is pitching its HTML5 efforts, its hardware acceleration engine, and its progress in removing legacy baggage from its browser, it is rather surprising that Microsoft has not been marketing HTML5 and its capabilities for Windows Store applications. HTML5 will deliver a completely new connected app experience that will be entirely enabled by IE10, which offers a great hardware acceleration engine to run certain apps with certain features much better than Chrome and Firefox can.

I am not quite sure why Microsoft has failed to mention this opportunity for developers right off the bat.

Bottom line

Put everything together and the initial impression of the Windows Store is not quite as exciting as Microsoft would want it to be. The pitch to developers needs to be streamlined, the focus clearly needs to be on HTML5, and Microsoft needs to move away from touch only.

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mobrocket 12/23/2011 9:16 PM
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aracheb 12/23/2011 9:22 PM
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fuck. finally gruener write something without siding to apple..

PhoneyVirus 12/23/2011 9:36 PM
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Maxor127 12/23/2011 9:42 PM
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Was the download.com comment sarcasm? It was probably on this site where I read that CNET was caught offering misleading downloads to try to trick users into installing junk that they don't want without the developers' knowledge.

lradunovic77 12/23/2011 9:43 PM
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lradunovic77 12/23/2011 9:45 PM
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lradunovic77 12/23/2011 9:54 PM
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jad023 12/23/2011 9:57 PM
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Microsoft does not bring up HTML5 because developers don't want it. When microsoft mentions HTML5 THEY LOSE DEVELOPER INTEREST. Its like a bad word to us. So they keep mum because they under estimated the negative feedback from their developer community. They still are not sure if developers are going to show up for Windows 8 to build apps. There is a bigger story here. If it fails Windows 8 goes away, but so does the HTML5 stuff. I am personally willing to sacrifice it. Check out what Microsoft developers are saying about the HTML5 direction. You will soon see its some scary stuff.

Anonymous 12/23/2011 9:57 PM
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So many things wrong in this FUD article. All windows store apps will support mouse and keyboard. Why would desktop and laptop users not use the app store to get the latest and greatest software for Windows. CNET will not be able to offer winrt apps for download. And download.com is a cesspool of crapware and anti-malware software. It will not be competitive it representative of what you find on Windows app store. Anyone who thinks Microsoft will have trouble attracting developers to the official Windows 8 app store is a moron. Even Windows Phone which has no market share right now is the fastest growing app store in history. Windows has the largest stable of developers in the world and will quickly have the largest install base in the world. It will probably take Windows 8 less than 8 months to surpass the iPad install base.

lradunovic77 12/23/2011 9:58 PM
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lradunovic77 12/23/2011 10:01 PM
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lradunovic77 12/23/2011 10:03 PM
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Anonymous 12/23/2011 10:11 PM
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mattstone 12/23/2011 10:12 PM
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Windows Phone market share has nothing to do with the interface. Every review of Windows Phone I've ever seen has spoken with high praise of the interface and people who have the phones say they get complements from strangers all the time. The point anyway was that Microsoft has no trouble attracting developers to it's platform even when there is limited market share, so Windows 8 which will have massive market share certainly won't have problems attracting developers to the platform.

mattstone 12/23/2011 10:31 PM
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I'll give this article credit for one thing. They qualified the headline with "may fail." Sure there is a remote possibility of anything. If you're a betting man and you're counting on Windows to fail and an app store that is built into the desktop to fail because of CNET's offerings at some website then just wow.

Keep in mind that even Vista which was one of the worst selling Windows in recent years sold many more copies than iOS has. Perspective seems to be lost here. Microsoft on a bad day has a bigger reach than Apple at it's zenith. Windows 8's app store is going to overtake everything on the market in a matter of months, not years. People don't seem to be able to comprehend the volume of Windows PCs sales and the importance of having an app store pre-installed on the desktop of every computer manufactured in the world.

Another thing lost at a techy geek site like this: Windows 8 metro/touch friendly interface has far more mainstream appeal than any version of Windows before it. But beyond that the type of apps that are going to propel Windows 8 into the mainstream are casual/mainstream fare like Angry Birds. It's not just about Photoshop and IE anymore guys. Look at what Kinect did for Xbox 360 sales, it's instructive to what can happen when a company that has already conquered a segment of the market suddenly opens it up to a new audience.

jad023 12/23/2011 10:36 PM
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Matt on this one I think you may be wrong. Here is why. Windows Phone was a trial. Kind of like we know Microsoft is big so we better go with our logical choice. Lets build an App for Windows Phone and see how it does. It also help that the tools for windows phone development make all other platforms look like they are 20 years behind. But, Windows Phone did not take off. Microsoft is going to have to sell a large number of Windows 8 licenses before developers jump in. To build for Windows 8 I have to learn a new API, while I have more users on Windows 7 and I can use what I like and am comfortable with. If Windows 7 gets an app store that would have some value to developers. It will be a hard sell non Windows 8

del35 12/23/2011 10:56 PM
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Quote : Microsoft should be focusing more on helping developers to market their apps among potentially tens or hundreds of thousands of apps.


Absolutely correct also the way for Microsoft apps to become entrenched in the Windows community is to mix free Applications with for payment ones and allow lots of user tweekability. The bottom line is that Microsoft has gone from being a hated company to one people tolerate and even support, thanks to Apple and its nefarious defrauding and jailing of its gullible supporters. I mean there was a time when people thought Microsoft was about control and restriction. Now we look at Microsoft as a beacon of freedom by comparison to companies like Apple.




iLLz 12/23/2011 11:02 PM
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In my eyes, the Windows 8 App Store will succeed and in a big way. Once Windows 8 becomes ubiquitous and it commands a large percentage of the market, the sales will be rolling in. Especially on tablets and phones where the metro UI will be prominent. I even think this will work well on the desltop and laptop side of things as well, especially on new purchases, whereas already purchased software will just be installed via previous methods.

Given Widows market share, it can only be a good thing for MS and Developers as there will be such a huge install base to work with.

freggo 12/23/2011 11:06 PM
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unionoob 12/23/2011 11:34 PM
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people can bash MS app store, but to be honest I would preffer to use it over googleing and hopeing I don't an virus or trojan, it would be even easier to get apps I need and some small developers which actually make good soft could get some cash.. I see more ++ then --

jtt283 12/23/2011 11:43 PM
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"Apps" are for toys. "Applications" are programs that serve useful purposes, like MS Office (or Open Office, or any other productivity package). I don't think Microsoft needs a toy store to serve its target market for Windows devices: businesses that have the money to buy the tools to get jobs done; I don't think they need to worry about selling toys to Junior to impress his little friends for a week or two before they're forgotten.

Anonymous 12/23/2011 11:57 PM
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What kind of tech journalist in almost 2012 still refers to Windows PHONE as Windows Mobile? This was a decent article with good perception, however you've completely ruined you're credibility with anything Windows related when you don't even know the proper name of the software you're reviewing!

JOSHSKORN 12/24/2011 12:01 PM
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Really, what's the point of an "Appstore" or something like it for a PC? Aren't they meant for more of a "mobile experience" ?

unionoob 12/24/2011 12:08 PM
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JOSHSKORN :
Really, what's the point of an "Appstore" or something like it for a PC? Aren't they meant for more of a "mobile experience" ?



Well, depends what you understand as apps, those apps what we are using on phones we clearly don't need on PC, but on app store you could get softs like CPU-Z, Afterburner, Open Office and other popular softs without looking in google and DLing it from 3rd party web sites which might be infected with some random crap.

CKKwan 12/24/2011 12:36 PM
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If Windows 7 and Office 2010 sells for US$0.99, I think they will be great success!

zybch 12/24/2011 12:57 PM
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aracheb :
fuck. finally gruener write something without siding to apple..


Not really. Not mentioning his favorite much, but sledging MS as often as possible accomplishes the same thing.
His 'article' is so full of misrepresentations of fact he should be ashamed.

zybch 12/24/2011 1:00 AM
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mattstone :
Windows Phone market share has nothing to do with the interface. Every review of Windows Phone I've ever seen has spoken with high praise of the interface and people who have the phones say they get complements from strangers all the time. The point anyway was that Microsoft has no trouble attracting developers to it's platform even when there is limited market share, so Windows 8 which will have massive market share certainly won't have problems attracting developers to the platform.


Its not even an issue with attracting devs. Its the morans in phone stores don't know squat about th ephones (and don't want to learn either) and will blindly recommend iPhones and androids even when they know damn well that a particular customer is going to be quickly lost in the needless complexity of android and doesn't care about being 'trendy' by getting a fruity phone.

Compuservant 12/24/2011 1:07 AM
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I think the author missed out on one very important thing Microsoft has going for it. Kinect. Mattstone hinted at it and the author even mentions the X-box platform is underutilized. Word is out that Kinect, version 2, will be for PCs and have facial recognition as well as the ability to read lips. If this works as touted, Microsoft can trump touchscreens. We could all be "Navigating Like Neo" in the Matrix by simply moving our hands around in the air or simply speaking commands. I know for a fact that they are working on a Microsoft "home" system where the whole house is integrated and the user interface (note - no GUI) is voice based, ala Captain Kirk. Something to think about but these won't be $0.99 apps, a.k.a. programs.

house70 12/24/2011 2:31 AM
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In "the bad" section Gruener is talking about the fact that Cnet is offering apps for Windows systems, therefore creating competition to a prospective Windows Store, dooming it from the start. Yse he fails to explain how is this bad for Windows 8 in general (see title of article). It's like competition is bad for the platform. IMO, competition only brings the platform into focus, because there are more suppliers fighting for the same OS. By some twisted logic, this is supposed to be bad. Maybe in Apple's model, where there is only one AppStore available for their customers and the developers who are being taken for a ride by Apple's practices.
If MS puts the right set of tools in devs' hands and set them loose, there is no telling where the devs are going to stop. How can this be bad?
About Xbox live: I think that a store that has X-box in it's name will not be taken seriously by most businesses and businessmen. That is too quickly associated with the gaming platform, and most users are not interested in that. The idea behind integrating apps and making them available via a common portal is good, that's what Android and iOS are doing, but the name can hurt it. If anything, that would be "the bad".
I took the time to read Gruener's spewing, mostly because I try really hard to make some sense of what he is telling and to use some sane arguments to show that he is wrong about this (like about other million things he's been wrong in the past). Truth is, he likes to bash everything that is not Apple and in the end he does not need logical arguments to do that (haters never use logic). That's why my attempts to understand his logic have eventually failed, and this article is no different. Take the "touch" section, for instance. MS is trying to unify the app store by promoting apps that are useful using the Metro interface, but at the same time can (and will) be used by desktop/notebook users via a classic interface (KB and mouse). MS has always affirmed the fact that the classic UI will not be abandoned (how can it? it's their bread and butter for more than 90percent of all PCs) and therefore it's logical that every important/essential application will have a classic UI and a Metro UI support. Yet for Gruener having options is (again) something bad. In case he's not informed, Apple is doing the same exact thing, trying to unify apps for iOS and their MacOS. I presume that is good for Gruener only in Apple's case, but not in MS'?
I rest my case.

wheredahoodat 12/24/2011 2:47 AM
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Can't wait for the Windows 8 appstore with the new tablet centric Metro UI on my traditonal desktop/labtop pc, so I can use the current most popular downloaded apps on Itunes and Android app store including Facebook, Gmail, and google maps, along with top selling games like Angry birds and fruit ninja. Its not like we had easy access to these web applications on desktops before apps stores.

Wait a minute......something seems off.

hoof_hearted 12/24/2011 3:33 AM
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download.com and cnet... give me a break! That is the biggest rip-off site I know of. Between software trying to tack on their stupid spy toolbars to their virus checkers that find the viruses but charge for removal. I trust nothing that comes from there.

And now even Apples and Android appstores are crap because of "in app" purchasing. It essentially allows devs to "hide" the real price. I just hope MS doesn't allow this deceptive practice. I see tons of games on Android and Apple come out that are now "free".


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