Microsoft is teaming up with Best Buy to promote machines with its latest Windows 8 operating system as the software maker and electronics retailer try to combat the worst personal computer slump on record.

Microsoft is setting up its own Windows stores inside 500 Best Buy outlets in the US and 100 in Canada, the companies announced yesterday. Other Microsoft products including the Windows Phone, Office software and Xbox gaming console will also be featured as part of the alliance.

Windows 8, an overhaul of Microsoft’s flagship operating system released in October to appeal to mobile users, has failed to reignite the ailing PC market, where shipments plummeted by their largest margin on record in the latest quarter, according to IDC. Best Buy, the world’s largest consumer-electronics retailer, posted an $81 million first-quarter loss amid mounting online competition.

As part of the agreement, Microsoft will train 1,200 Best Buy salespeople to work in the dedicated Windows shops.

The stores will showcase how various Microsoft products work together, a selling strategy that has been effective for devices running Apple’s iOS operating system and Google’s Android software.