Microsoft's placement of stores is strategic as the company moves to locate some of its stores close to Apple retail stores. It has reportedly hired former Apple real-estate guru George Blankenship to handle the job as a consultant.

The Redmond, Wash.-based software giant first made its store plans known in February when it hired former Wal-Mart veteran David Porter to lead the effort to launch the retail stores.

Direct To Consumer

While Microsoft is known for selling software to businesses, it has also focused on direct-to-consumer selling with its popular Xbox 360 gaming unit and its Zune digital media player.

Along with displaying and selling new products in its stores, Microsoft will now have a way to reach out and connect with consumers. A slide show of Microsoft's plans has surfaced with the name of retail consulting firm Lippincott on it, but the company is being tight-lipped.

"I'm afraid we're not at liberty to confirm or deny that we work with Microsoft," said Lippincott partner Kathleen Hatfield.

Lippincott's Web site, however, shows it worked with Microsoft on the relaunch of its MSN portal by creating the display to be seen in 5,000 Radio Shack retail stores nationwide.

Whether real or doctored, the slide show indicates Microsoft's effort to connect with consumers.

The plans show wall-sized screens with messages from the company and a guru bar or answer bar similar to Apple's Genius Bar with employees available to answer technical questions. The stores will also feature areas dedicated to consumers wishing to custom-build a PC.

Taking A Bite Out of Apple

Establishing the stores will be another avenue in which Microsoft can display its Xbox gaming units, software and Windows 7 operating system , which is slated to launch on Oct. 22. It is also a way to better compete against Apple.

Microsoft's retail presence could take a bite out of Apple which, despite skepticism about opening retail stores, has seen success. Since opening its first store in 2001, Apple has seen revenues increase from $5 billion to $32 billion and its share of the PC market has grown from three percent to 7.6 percent, according to technology research company IDC.

While Apple's success with its iPod and iPhone devices has clearly played a role in its success, analysts say its retail efforts also contributed to the success.

Consumers are used to having a choice between rivals. For each of McDonald's golden arches, a consumer often sees a Burger King close by. It's still unclear how many stores Microsoft plans to open and whether Microsoft will beef up competition by putting a retail store in the same vicinity as every Apple store.

Currently, Apple has more than 200 stores worldwide, with the highest number of stores (45) in California, so Microsoft has a lot of catching up to do.