With the demise of Circuit City there are many questions circling about what is going to happen now. Best Buy’s stock was beaten up badly during the winter season when everyone was uncertain of the economy and consumer spending. From $45/share all the way to $16 at one point. But this was no surprise because with the liquidation of Circuit City people were getting great deals on electronics, and Best Buy couldn’t keep up without hurting their margin.
Best Buy did the smart thing which was weather the storm and wait for them to go out of business. They were waiting on the sidelines ready to pick up the pieces. But are they going to truly be able to take advantage of this weak market without their biggest competitor? Not if Microsoft has a say. There are rumors surrounding what exactly is going to be in Microsoft stores, but the fact is there are going to be 
Microsoft stores. No one is really sure yet what is going to be in these, but it’s clear they are trying to compete with both Apple Stores and Best Buy. There is a funny slide show mocking Microsoft with their Vista blunder by eWeek (here). I’ll be interested to see if Microsoft has enough of a following to have a successful go around at this business or if they will flop just like the Gateway stores circa 2000 did.
