Customers are greeted by cheering employees as the doors to the first Microsoft retail store open in Scottsdale, Ariz.

SCOTTSDALE, Ariz. (AP) - Microsoft Corp. opened its first retail store on Thursday to hundreds of people who waited for as long as 12 hours to get freebies and to see if the place is as cool as it was hyped to be.

Eager customers cheered as a giant white curtain dropped from the front of the Scottsdale store, revealing a big, bright and airy space lined with giant screens displaying popular video games such as Rock Band and Halo.

Employees jumped up and down and high-fived customers as they ran in the store to get gift bags and browse among dozens of computers and software.

Michelle Armstrong, a 20-year-old in pajama pants who slept outside the Scottsdale Fashion Square mall to be among the first in the store, said she was a bit disappointed in the bags, which included a $25 gift certificate, chapstick, mints, a bottle of water and tickets to an Ashley Tisdale concert at the store later in the day.

"I heard they'd be worth between $500 and $1,500, but I really did want to see the store, so it's not a total loss," she said. "I think it looks really cool. When they dropped the curtain, I was really impressed."

Others, like 45-year-old Malinda Harrell, were just there to get tickets to see Tisdale, one of the stars of "High School Musical."

"I'm not into computer stuff," Harrell said, adding that she and her daughter would go to the concert but likely would never return to the Microsoft store.

Kaelin Jacobson, a 20-year-old Web programmer, said he came to the store's opening to give Microsoft "one last shot," adding that he's had a lot of problems with Vista, the last edition of Windows.

Jacobson, who was carrying an Apple laptop, said he has to use Windows for his job and that Microsoft has an uphill battle to match its biggest competitor's sleek and popular stores.

"I expect a retail experience that is involved but not where they're trying to stuff products down your throat," he said. "I want a no-hassle retail experience like Apple."

The Microsoft store's opening coincided with the launch of a new edition of Windows. Microsoft is hoping for a fresh start after a bad reception for Vista.

Company COO Kevin Turner mingled and joked with the crowd at the opening, calling it "a magical day for Microsoft."

He said Microsoft stores will stand out from Apple's stores by developing deeper customer connections.

"We're not looking for an encounter, we're looking for a deep-seeded relationship so we can truly connect with their needs and help illuminate the magic of software and the value of the technology," he said.

Microsoft plans to open a second store in Mission Viejo, Calif., in coming weeks.