There's been a bit of back and forth today over Microsoft's announcement that it would be ending its long-standing CES keynote role, and will no longer have a booth at the show as it's done for many years. Head of Microsoft's corporate communications, Frank X. Shaw, posted a rather direct note about it on the company's blog, and the CEA confirmed the move on its blog.
Shortly thereafter, GigaOM posted a report that it wasn't Microsoft who initiated the end of the relationship, but the CEA itself. According to the article (via a source) "Microsoft didn't pull out of the keynote — they were kicked out."
Exciting stuff, one would think. However, we've spoken with sources of our own close to the matter, and it seems that the less exciting story is actually the most accurate one. Apparently last year the CEA requested that Microsoft sign on for another three-year deal for keynoting and presenting at CES. We're told that Microsoft declined that offer and accepted only a single year deal (covering 2012) — which would indicate a lead-up to the more comprehensive move the company announced today.
Our source did indicate that the CEA was interested in playing the field for the lead keynote address, and that Microsoft would ultimately have had to pony up more cash for the privilege of holding onto its spot (everybody at the show, even Microsoft, pays to exhibit and participate). As we were made to understand it, Microsoft simply didn't feel it was getting a reasonable return on its investment with CES, and the reality is that the show hadn't aligned with its launches for a few years.
The decision apparently was made in a truly amicable fashion, with neither side seemingly getting what it needed out of the relationship... which doesn't make for a very entertaining story.
What's really interesting about the news is that it marks a trend we've seen over the last few years of halo companies backing away from previously unassailable trade shows (Apple departing Macworld being the most obvious example). It seems like the Cupertino method of choosing the time and place for your product launches has firmly steeped in the mind of the industry, and it raises the question as to whether broader shows such as CES have the long-term staying power compared with more focused events such as E3 or Mobile World Congress.

There are 47 Comments. Add yours.
Well actually I would argue that CES would still be hold sway since it is the (relatively) smaller companies which cared most about CES. They need to introduce a year long defining product or product range & for American audiences this was the most relevant venue esp. for items like TVs, Blu-Ray players & other electronic devices.
MS truly cares about only one major electronic device from it’s stable and that is the Xbox. With a good probability of MS at least announcing the next gen Xbox at this year’s E3 CES becomes even less relevant. I think it worked out for both parties IMO just like the post mentions.
Posted on Dec 21, 2011 | 11:06 PM EST reply Recommend (2) Flag actions
They certainly care about things beyond the Xbox. Windows? Windows Phone? Office? Live services? If you’re talking hardware, it’s between Xbox and WP7, but even then, MS is primarily a software company.
Posted on Dec 22, 2011 | 5:50 PM EST reply Recommend Flag actions
It is true that Microsoft have some other consumer focused lines but just like Xbox has E3, WP7 has Mobile World Congress. Live services probably splash over into most events and their business productivity things are truthfully best left at developer conferences. Windows itself I think would warrant its own event, if only because they’d want to make sure they get all the attention, which is harder at CES.
I think Microsoft’s reasoning here is not too far off base, but CES just won’t feel the same starting without them.
Posted on Dec 31, 2011 | 8:09 PM EST reply Recommend Flag actions
For the last few years Ballmer’s keynotes have been godawful anyway (remember the HP slate debut debacle?), so, really, this is a good thing. No more Microsoft doing the roadside stall sales pitch. ThumbsUp. Get a company worth keynoting to do the keynote. ThumbsUp. Microsoft relies on its own patchy launch capabilities to develop its markets. ThumbsUp.
Posted on Dec 21, 2011 | 11:08 PM EST reply Recommend (5) Flag actions
Good luck with that. This merely marks the forseeable end of CES in its known form. As pointed out in the article. Why waste money and resources on a fixed, anual show when your launches are and have to be flexible?
Posted on Dec 22, 2011 | 3:59 AM EST reply Recommend (1) Flag actions
I think CES has been a lot worse to MS than it has been good. They end up showing us stuff we’ve already seen, or things that just aren’t ready yet. It’s the right call to announce things as they’re ready to.
Posted on Dec 22, 2011 | 5:52 PM EST reply Recommend (1) Flag actions
Would it be super ironic to point out that MG Siegler beat you to the punch on this one earlier today?
Posted on Dec 21, 2011 | 11:21 PM EST reply Recommend (6) Flag actions
Bullshit.
See what I did there?
Posted on Dec 21, 2011 | 11:33 PM EST reply Recommend (1) Flag actions
Two pretty different angles. I would read them again.
Posted on Dec 21, 2011 | 11:36 PM EST reply Recommend (16) Flag actions
Haha yep – I just thought it was funny.
Posted on Dec 21, 2011 | 11:41 PM EST reply Recommend (6) Flag actions
MG is a sensationalist.
Posted on Dec 22, 2011 | 12:39 AM EST reply Recommend (3) Flag actions
MG Siegler reported it wrong.
Posted on Dec 21, 2011 | 11:40 PM EST reply Recommend (5) Flag actions
i think you mean “MG Siegler should avoid reporting it in that way”
Posted on Dec 22, 2011 | 12:03 AM EST reply Recommend (4) Flag actions
MG is an anti-Microsoft douchebag who looks at any opportunity to bash them. He can go &*%$ himself!!!
Posted on Dec 22, 2011 | 9:24 AM EST reply Recommend (7) Flag actions
say what you really think dude, don’t hold back!
Posted on Dec 22, 2011 | 10:49 AM EST reply Recommend (2) Flag actions
Man, what a fucked up deal, now wonder MS didn’t agree.
Can’t believe they actually charge MS to do the keynote, that’s free publicity for them. It’s bad enough they charge so much for their booths.
Good call on MS’s part.
Posted on Dec 21, 2011 | 11:21 PM EST reply Recommend (2) Flag actions
They charge everyone. Not just Microsoft.
Posted on Dec 21, 2011 | 11:56 PM EST via mobile reply Recommend (9) Flag actions
no shit sherlock
Posted on Dec 22, 2011 | 1:55 AM EST reply Recommend (4) Flag actions
Do you suppose these events fund themselves? CES is an industry event; that’s how it works. This isn’t some patchouli-infested hippie festival with free stage time and booths for everyone. For years Microsoft clearly considered the monetary price of that keynote well worth the spending.
It may well no longer be in Microsoft’s interests to keep that venue. But there’s no sense in pretending like there’s anything outrageous that Microsoft have to pay to establish their presence at the event.
Posted on Dec 22, 2011 | 11:13 AM EST reply Recommend (1) Flag actions
CES will forever remain important for smaller companies, because they’ll get more press there than any other time during the year (especially when bloggers troll for cool, underreported products). But companies the size of Microsoft and Apple are fully capable of holding their own press events and getting organizations to cover their events. They haven’t needed CES for years, and it ultimately pidgin-holes them into trying to show off thoroughly unfinished products.
Or another explanation, Microsoft did not want to continue to get trapped in the idea that no Windows beta at CES means the product is delayed.
Posted on Dec 21, 2011 | 11:29 PM EST reply Recommend (1) Flag actions
The Internet is CES. Trade shows are obsolete. I mean, seriously, why in the world would I pay to travel anywhere then pay admission to anything just to be subjected to endless marketing? I can get that in a way I can control while sitting peacefully in my chair sipping coffee and the only cost I have is the coffee.
Or, are the trade shows really more about middle-aged men getting away from their wives (and lives) long enough to pretend the booth bimbos are actually still attracted to them?
There was a day when communication was hard and trade shows (and conferences) were necessary. They aren’t any more. Case in point: Game Developers Conference (GDC). The last GDC I remember as being “relevant” happened in a year beginning with a one. Shortly thereafter, it was less about the sharing of ideas. Naturally, the Internet became the new place where people share ideas. So, what is left for the actual trade shows and conferences? Why should I or anyone else actually go there at all?
Posted on Dec 21, 2011 | 11:37 PM EST reply Recommend (1) Flag actions
That’s nice and all but how do expect for bloggers to test out new hardware through the the web?
Trade shows are still important. They’re just not that important to the big companies who can have a crew of bloggers and reporters show up at any time they choose.
Posted on Dec 21, 2011 | 11:59 PM EST reply Recommend (4) Flag actions
They already have a way for bloggers to test new hardware. They send out review units.
Posted on Dec 22, 2011 | 12:06 AM EST via mobile reply Recommend Flag actions
Companies are not going to send out prototypes of products that are a few months away from release.
Posted on Dec 22, 2011 | 1:26 AM EST reply Recommend Flag actions
You’re a little bit right, and a little bit wrong on that. They do send out prototypes of products a few months away from release, usually it’s laptops, TVs or the like (rarely anything small like a phone though) with all manner of “pre-production” stickers across them. Then when the final thing is ready they’ll send a proper review unit.
Tradeshows are good for interviews, talking to the top brass about the future/current products, finding smaller products you wouldn’t already know about and getting a feel for a device before having to wait indoors all day for a delivery (and then indoors all day again for the collection of it).
Posted on Dec 22, 2011 | 3:55 AM EST reply Recommend Flag actions
Most of times companies don’t allow journalists to actually use those prototypes in the conference floor either;
They just give a scripted demo of a handful of key features and that’s it. (sometimes there isn’t even a working prototype, just a mock unit), all of which could’ve been done with a promo video on youtube.
Posted on Dec 22, 2011 | 3:57 AM EST reply Recommend (1) Flag actions
As some one that works in an industry that has a large trade show, similar to CES (Infocomm) I wonder if you have been to a large goods trade show like this as a buyer. The internet is fine for finding things when you have an idea of what you are looking for. Companies with good SEO can get their products in front of you pretty easily and will send out demo units if you become a dealer for them. However if you are a small company selling you might get overlooked, even if your product is superior. The flip side is if you are a small company looking for something often the reps and manufacturers want you to open a dealership to get pricing and demo units. These dealership requirements are at times HUGE opening orders that a small company just can’t afford. So, instead, you go to the trade show. You walk the floor. In going to Infocomm I have run across things that I didn’t know a current manufacturer had in their lineup, gotten direct clarification about differences in products that aren’t readily aparent online, and I have discovered products that I would never have otherwise found because they are obscure or new enough to not have an internet presence yet.
In the end, each company that goes to a big show gets something different. For Microsoft and other huge companies the ROI is not nearly what it may once have been, you are right, because they can get the same exposure online.
To your comment about show attendees: I am neither middle-aged nor worried about the boothies being attracted to me, so maybe I am not who your comment was pointed at, but for me a trade show is about going and learning something about the industry I am working in in-spite of the marketing extravaganza that these shows can be.
As a side note- Maybe it is entirely different between CES and Infocomm because of the industry differences, but I would venture a guess that a lot of the same principles apply.
Posted on Dec 22, 2011 | 10:37 AM EST reply Recommend (1) Flag actions
You are spot-on about the continued relevance of trade shows. I work in the TV industry, and one of our big gatherings, NATPE, hasn’t been strictly “necessary” for years— it was originally a market for program suppliers to get their products in front of program executives, and lots of deals were cut on that floor and in the suites.
Now, with group deals and changing distribution models, the NATPE of old is pretty redundant. Despite that, however, it’s still a great place to network, to pick up industry gossip and meet players, and powwow with the folks actually making the programs instead of just the people who sell them. It’s worth it for those things alone, even if I don’t pick up a single show I see there (and I never have, so far).
Posted on Dec 22, 2011 | 2:22 PM EST reply Recommend (1) Flag actions
Indeed. Networking is huge. I can’t tell you the number of times I have gotten the business card of someone at a show, someone of importance, and been able to call them later to resolve something that the “underlings” would have taken forever to deal with. As an underling myself that personal, “Hi I met you at…” lead in makes a big difference in getting things done.
Posted on Dec 22, 2011 | 3:03 PM EST reply Recommend Flag actions
It reminds me of the old days in tech. When middle to older aged men rulled the tech world. Computers were for business use and.not for families and kids.
Posted on Dec 21, 2011 | 11:58 PM EST via mobile reply Recommend Flag actions
Yeah CES has gotten less relevant over the past few years but the after parties seem to keep getting better?!!!!
Posted on Dec 22, 2011 | 12:02 AM EST reply Recommend Flag actions
m$ is deing
Posted on Dec 22, 2011 | 12:27 AM EST reply Recommend (1) Flag actions
From the day you were bron, you were deing …
Sorry, I couldn’t resist.
Merry Christmas!
Posted on Dec 22, 2011 | 2:01 AM EST reply Recommend (12) Flag actions
br0n
Posted on Dec 22, 2011 | 3:52 AM EST via mobile reply Recommend Flag actions
I think this could be a good thing for CES. It might give the smaller players more room now to make a splash. Overall though I do think more focused shows will remain the trend. These big shows tend to be a lot of money.
Posted on Dec 22, 2011 | 1:03 AM EST reply Recommend (1) Flag actions
The rumor that the CEA booted Microsoft is a pretty silly one on its face- why would they kick out one of the largest companies and relinquish all the publicity and revenue they get from Microsoft? The source article to the rumor doesn’t even bother to answer the question, so why even report on and amplify something so unsubstantiated?
Posted on Dec 22, 2011 | 1:09 AM EST reply Recommend (3) Flag actions
Maybe because the industry and the market have changed, and while MSFT is still a valuable participant, it is no longer the 800lb gorilla it once was.
Posted on Dec 23, 2011 | 3:53 AM EST reply Recommend Flag actions
MWC is my Christmas.
Posted on Dec 22, 2011 | 2:46 AM EST reply Recommend Flag actions
CES is a vaporware conference. It is a waste of time. 90% of the products that look interesting never get released or take so long to come out that it doesn’t matter. Where are the Vizio phones? http://www.engadget.com/2011/01/05/vizio-phone-hands-on-preview/ Where is the Razer Switchblade?
There are some good real products that show up at CES. The Palm Pre and the Neato XV-11 vac come to mind. But the majority of products are vaporware that are irrelevant to the market.
The timing of CES is also really terrible in my opinion. I’ve never understood why the industry decides to wait 2 weeks after Christmas to debut all the products that make your Christmas presents obsolete.
There are products that I specifically did not buy and told people not to buy me for Christmas this year because of CES. I would have purchased or asked for a couple of TVs this year if not for CES being at the start of January. Fortunately my birthday comes after CES.
Posted on Dec 22, 2011 | 3:40 AM EST reply Recommend (1) Flag actions
i know this isn’t a quote from josh, or the verge…but gah’d damn i hate bombastic ass reporting and people that are of the hand stands on the beach “look at me look at me” nature. “Microsoft didn’t pull out of the keynote — they were kicked out.” that’s like a landlord saying that he “kicked out” his tenant, even though the tenant chose not to re-up his lease 6 months in advance, and had a moving truck moving all his crap out prior to his last month of rent, with a few friends pizza and beer of course.
Posted on Dec 22, 2011 | 3:44 AM EST reply Recommend Flag actions
This is a metaphor, a fractal if you will, for Microsoft’s loss of focus as the ubiquitous, default open-access platform.
Posted on Dec 22, 2011 | 4:11 AM EST reply Recommend (1) Flag actions
Whoa, buddy! You wanna tone down that language a bit?
Posted on Dec 23, 2011 | 4:25 PM EST reply Recommend Flag actions
Microsoft’s CES keynotes have largely been about nothing in particular with all the interesting things happening at MWC, MIX, BUILD (formerly PDC), E3 and so on.
I’m actually a little surprised that they’re still doing a keynote in 2012. I guess it could be a good place to cover something less product specific such as connecting all MS products through the cloud, the whole “great to be a family” message of good products working, supposedly, great together. But that is still a pretty unfocused message since it’s not really about any one thing. It may well be better to just tout that sort of thing as a feature of each new product release as they come and the only product releases I could see coming up any time soon would be more Office apps and the like for competing platforms. Win 8 is still at least 6 months away, Windows Phone only just got updated this fall, Xbox 360 just got a software update.
The one product that would be great for CES would a new Xbox with a solid focus on enhanced media center functionality and perhaps a built in Kinect v.2. The gaming aspects, such as the actual games, could be covered in more detail at E3 but I doubt a new Xbox could be released before the end of 2012 making it a bit awkward to introduce it almost a full year before availability.
There just aren’t any good reasons for Microsoft to have a large presence at CES.
Posted on Dec 22, 2011 | 4:29 AM EST reply Recommend Flag actions
Think of it more as a win for credibility in technology than a loss to the world of unintentional comedy.
Posted on Dec 22, 2011 | 9:34 AM EST reply Recommend (1) Flag actions
This might not be the juicy explanation everyone was hoping for, but hey, it’s logical. CES doesn’t line up with Microsoft’s schedule for announcing/releasing products, and why should they pay more to have a keynote if their heart isn’t really set on it? CEA also wants to shop around for other potential keynote possibilities, so both sides agree to part ways. It makes sense. I know it’s not scandalous, but it’s important to see how Microsoft is really trying to reorganize and plan new strategies for their products. Nothing was keeping them at CES. In the past, Microsoft was all about doing everything the same and never diverting from their traditional yearly events and practices. But I think now they see that nothing is holding them to that and they can make their own choices on what they do and do not participate in. This is definitely a company with a whole new outlook on their business and I think the decision is fine for both parties. CEA can look into other exciting companies to get the spotlight, and Microsoft can use the money they saved on the CES event towards improving something else within the company or R&D or something. Again, it’s not exciting on the surface, but to me, it’s really something to look forward to. I really like that Microsoft is questioning their old ways and breaking up the old familiar patterns and trying different things now. To me, that’s more exciting.
Posted on Dec 22, 2011 | 11:34 AM EST reply Recommend Flag actions
Josh Topolsky:
It seems like the Cupertino method of choosing the time and place for your product launches has firmly steeped in the mind of the industry, and it raises the question as to whether broader shows such as CES have the long-term staying power compared with more focused events such as E3 or Mobile World Congress.
Typical fanboy. (John Gruber)
Posted on Dec 22, 2011 | 6:59 PM EST reply Recommend Flag actions
What’s interesting is that MSFT doesn’t enjoy the position it once held in the industry, or the ability to dictate terms.
Posted on Dec 23, 2011 | 3:51 AM EST reply Recommend Flag actions
Something to say? Choose one of these options to log in.