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Microsoft closing its retail stores

Xbox maker closing 82 Microsoft Store locations, will run "Microsoft Experience Centers" in London, New York, Syndey, and Redmond

Microsoft is giving up its retail footprint, as the company today announced it would be closing its Microsoft Store brick-and-mortar locations.

The company's website lists 82 such locations between the US, UK, Canada, Australia, and Puerto Rico.

The closures will lead to Microsoft taking a pre-tax charge of roughly $450 million for the quarter ending June 30, with that largely coming from asset write-offs and impairments.

Microsoft said retail team members will instead work remotely to provide sales, training, and support for customers.

While Microsoft Stores are closing, the company is also going "to reimagine spaces that serve all customers" with the opening of four Microsoft Experience Centers, one each in London, New York City, Sydney, and the company's Redmond, Washington campus.

"Our sales have grown online as our product portfolio has evolved to largely digital offerings, and our talented team has proven success serving customers beyond any physical location," Microsoft corporate vice president David Porter said. "We are grateful to our Microsoft Store customers and we look forward to continuing to serve them online and with our retail sales team at Microsoft corporate locations."

Update: When asked about layoffs, a Microsoft representative told GamesIndustry.biz "All employees will have the opportunity to stay with Microsoft."

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Brendan Sinclair

Managing Editor

Brendan joined GamesIndustry.biz in 2012. Based in Toronto, Ontario, he was previously senior news editor at GameSpot in the US.