And over there, a teeny-tiny smartphone, selling coffee

If Microsoft are serious in increasing their retails stores in the US from 11 stores to 87, then can I suggest they look beyond retail space and make theme cool places to hang out. Free wi-fi, a little coffee bar, comfy seats, rooms available for free use by clubs, societies and websites to arrange get-togethers. Make them as attractive to people as possible, and those people will over time help the bottom line, even if you might struggle to see the return in the till of the bricks and mortar stores.

But seriously, a coffee bar. In every store.