Microsoft Pulling Out of Consumer Electronics Show

After January 2012’s event, Microsoft no longer will be a key player in the Consumer Electronics Show. Microsoft is the latest vendor to pull out of the annual show in Las Vegas.

Frank X. Shaw, corporate vice president of corporate communications at Microsoft, offered reasons. First, the industry moves fast and changes faster. Second, the way Microsoft communicates to its customers must change just as fast.

Those realizations, Shaw said, caused Redmond to challenge its assumptions and ask itself questions: What’s the right time and place to make announcements? Are we adjusting to the changing dynamics of our customers? And are we doing something because it’s the right thing to do, or because it’s the way we’ve always done it?


Microsoft on the Sidelines

“After thinking about questions like these, we have decided that this coming January will be our last keynote presentation and booth at CES,” Shaw said. “We’ll continue to participate in CES as a great place to connect with partners and customers across the PC, phone and entertainment industries, but we won’t have a keynote or booth after this year because our product news milestones generally don’t align with the show’s January timing.”

Shaw went on to say that as Microsoft looked at all the new ways it told consumer stories — from product momentum disclosures, to events like the Big Windows Phone in New York City, to a range of consumer connection points like Facebook, Twitter, microsoft.com and its retail stores — company execs believed it was the right time to make the transition.

Rob Enderle, principal analyst at Enderle Group, said he was not surprised Microsoft was taking a few steps back from CES. Microsoft is not the first vendor to do so — and Enderle suspects Microsoft will not be the last, unless the CES organizers adapt to changing times.


The Fall of CES?

“CES is a fall show. Most vendors aren’t ready to show fall products yet. The market has changed from one that moves annually to one that moves twice a year,” Enderle said. “Microsoft shouldn’t really be announcing Windows 8 until February when they are ready to roll it into beta.”

Enderle believes Microsoft came to the same realization that Apple did some time ago when it pulled out of Macworld. While it is helpful to attend events that talk about the future and technology in general, discussing products that are not ready is less helpful to vendors.

“Vendors have been pulling out of CES for a while. If you go to the show, finding a lot of the OEMs on the show floor is tough. They have hotel suites where they will meet with customers that are already there, but they don’t bother to rent a booth,” Enderle said. “To have Microsoft out is an indicator that the show isn’t providing the value it once did. The show gives competitors too long of a period of time to come up with a response.”

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