Microsoft Money Is (Quasi) Dead

The 17th year of market availability for Microsoft Money, the Redmond company's personal-finance-management solution is synonymous with the death of two traditions associated with the product. First off, Microsoft will no longer release new versions on a yearly basis, and in this context has scrapped the 2009 variant altogether. And secondly, sales of packaged Microsoft Money via physical retail store shelves will also be discontinued. However, the software company is not killing the tool altogether, claiming that it continues to be a valuable resource for customers. Still, end user feedback indicated that availability exclusively as download, along with incremental updates to be determined are the right way to go for Microsoft.

"We've decided against releasing a 2009 version of Money Plus boxed product," revealed Chris Jolley, product manager in Microsoft's financial products group. "Microsoft Money Plus distribution efforts will focus on selling software online via download, and we have discontinued traditional box sales of the software at retail. I doubt this surprises many of you, especially those who've discussed with me how annual releases don't make much sense for a product that's in its 17th version. The time seems right for this shift. Last year's sales of the software via download outpaced in-store sales for the first time. In fact, software downloads accounted for more than 50-percent of Microsoft Money sales."

The Redmond company stressed the fact that discontinuing traditional box sales of Money through the retail channel is a move catalyzed not only by the new behavior of consumers, who steadily shift online for their purchases, but also by the retailers themselves who are increasingly opting for digital shelves. Although Microsoft Money will continue to be available on traditional store shelves until supplies last, Microsoft is no longer shipping shrink-wrapped box copies of the product.

"This move means more business efficiencies on all fronts. Broadband clearly is mainstream; more and more people are shopping for software online, particularly in the financial arena," Jolley added. "(...) Today's consumers want instant gratification, and last year's sales percentages show that the immediacy of the download appeals to a large number of customers. In addition, retailers and other partners have asked for more opportunities to work with us on new distribution initiatives. Many are excited about the additional flexibility this change offers them. Online distribution means they can provide more inventory of our products, but require less physical space to manage inventory."