Office 2010 faces "market saturation" Sales affected, NPD

Microsoft Office 2010 retail sales have been "a bit disappointing" during the first two weeks. "A strong product launched into a "saturated market" faces considerable headwinds," NPD said…."The sales have below for the two weeks that of Office 2007."This time Office was launched during a seasonally slow period for PC purchases which've, over time, proven […]

Microsoft Office 2010 retail sales have been "a bit disappointing" during the first two weeks. "A strong product launched into a "saturated market" faces considerable headwinds," NPD said…."The sales have below for the two weeks that of Office 2007."

This time Office was launched during a seasonally slow period for PC purchases which've, over time, proven to have a strong impact on Office sales. Also, the launch time, during the Summer -- the quietest technology season of the year-- could also be a contributing factor to the poor results, given Office 2007 was launched in the much more busy holiday shopping season.

"Selling such a heavily used product into a base that has already been upgrading at a very high rate is an enormous challenge," Stephen Baker of NPD Industry. "While Office 2010 has many compelling new features, it's always an uphill battle to sell a high installed base product based on new features alone."

Finally, free productivity products like Google Docs or Office 2010's online versions have nothing to do on Office 2010 sales. These products have little awareness among the mainstream consumer who's the retail boxed version's primary customer.

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