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  Microsoft Reboots Battered Surface With Razorfish
Time: 14:35 EST/19:35 GMT | News Source: E-Mail | Posted By: Byron Hinson

Microsoft is taking another run at Surface, this time with a new digital agency. Despite an ambitious marketing plan, the tech giant has had a rough time breaking into the crowded tablet market. Last month, Microsoft announced a $900 million write-off on excess Surface inventory, surpassing the brand's total revenue of $853 million since its October 2012 launch. It also slashed the price of its Surface Pro by $100, just one month after trimming up to 30% off the cheaper Surface RT. Now Microsoft has tapped Publicis Groupe's Razorfish to handle digital consumer marketing for both Surface and its Windows operating system as the brands move into holiday-planning mode. Razorfish already handled Microsoft's Xbox and Bing accounts and recently lost the Samsung business to Interpublic Group of Cos.' R/GA, the incumbent on both the Windows and Surface brands.

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#1 By bobsireno (1748 Posts) at 8/19/2013 6:36:46 PM
No new ad agency or level of advertising will do for the Surface what another $100 price reduction would do. At $249 the 32-GB model MS would be positioned to sell. That's something that MS still doesn't understand. Consumers expect bargains these days and, mostly, will buy lower cost items that they see value in. At $349 Surface RT will only see a modest uptick in sales. At $249 MS would sell the hell out of 'em, or at least move the dusty inventory that they still have. Otherwise, Android tablets keep on selling to the bargain crowd and iPads to those that already own one, can easily afford one, or feel peer pressure to buy one.

#2 By AWBobStein (1074 Posts) at 8/19/2013 8:09:07 PM
Maybe they should just do that until the 2nd generation is fully figured out

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