Microsoft had a pretty stealthy unveiling of The Microsoft Store last week. There you can buy any product Microsoft makes, from Windows to Webcams. Don't expect to find any bargains, though.Electronic software distribution (ESD) makes a lot of sense. There's no reason to wait for a box to be delivered to your door if it only contains some bits on a DVD and a license key sticker. Bits and license keys can be sent efficiently over the Internet. What doesn't make sense is charging people significantly more for ESD than they'd pay if they bought a box from a retailer. That's what the Microsoft store is currently doing for many products.

Let's say you want a copy of Windows Vista Home Premium, Upgrade Edition. (I know a lot of people don't want Vista, but work with me here; it's a hypothetical situation.) This is the physical package with a DVD and license key, delivered in a box to your door. Microsoft's own Live Search Cashback has this product available from 14 different vendors with prices ranging from $69 to $162. Since it is a physical product there may be shipping charges, ranging from free to $10, depending on the store. If you buy the ESD download from the Microsoft Store, you'll pay $130 and no shipping. It's not the most expensive option, but also nowhere near the least expensive.

Microsoft's home store page was featuring Gears of War 2 for the XBox at $60. Again, Live Search Cashback found prices ranging from $49 to $62 for the box-and-DVD product. Microsoft Office Home and Student 2007 was available from $83 to $139. The Microsoft Store had the same product for $150 in ESD. To paraphrase Crazy Eddie, these prices are so ridiculous they're insane!

Speaking of Live Search Cashback, I wasn't able to find The Microsoft Store listed in any of the searches I did in Microsoft's own shopping search engine. Perhaps that's because their store was just launched, but it's something that should be fixed soon.