This press pass article http://www.microsoft.com/presspass/press/2009/feb09/02-12CVPRetailStoresPR.mspx
makes it look pretty clear that Microsoft Retail Stores are on the way. David Porter has been appointed to head up this initiative. He's been at DreamWorks for the last year or two but was with Wal-Mart for 25 years prior. That should bring some interesting retail experience into the company.