Many in the industry were skeptical; Chris Pratley of Microsoft recalled in 2004 that “Windows was still considered a joke. Betting the company on it was a big, big bet”. Unlike the model of Microsoft Works, Microsoft Office was a bundle of separate office productivity applications, such as Microsoft Word, Microsoft Excel and so forth. On August 8, 1989, Microsoft introduced its most successful office product, Microsoft Office. Microsoft Works would later be sold with other Microsoft products including Microsoft Word and Microsoft Bookshelf, a reference collection introduced in 1987 that was the company’s first CD-ROM product.
Microsoft, in 2000, released new products for all three lines of the company’s flagship operating system, and saw the beginning of the end of one of its most prominent legal cases. In 1997, Internet Explorer 4.0 was released, marking the beginning of the takeover of the browser market from rival Netscape, and by agreement with Apple, Internet Explorer was bundled with the Apple Macintosh operating system as well as with Windows. The company also released the Microsoft SQL Server 6.5, which had built-in support for internet applications. Microsoft also released the Microsoft Sidewinder 3D Pro joystick in an attempt to further expand its profile in the computer hardware market.
In 2002, Microsoft launched the .NET initiative, along with new versions of some of its development products, such as Microsoft Visual Studio. The console was also outsold by the Wii, which introduced gesture control and opened up a new market for video games. Microsoft entered the multibillion-dollar game console market dominated by Sony and Nintendo, with the release of the Xbox. Microsoft released Windows XP and Office XP in 2001, a version that aimed to encompass the features of both its business and home product lines.
- Windows Server 2008 and Visual Studio 2008, the next versions of the company’s server operating system and development suite, respectively, were released on February 27, 2008.
- In March 1992, Microsoft released Windows 3.1 along with its first promotional campaign on TV; the software sold over three million copies in its first two months on the market.
- In January 2019, Microsoft announced that support for Windows 10 Mobile would end on December 10, 2019, and that Windows 10 Mobile users should migrate to iOS or Android phones.
- In January 2023, CEO Satya Nadella announced Microsoft would lay off some 10,000 employees.
2011: Microsoft Azure, Windows Vista, Windows 7, and Microsoft Stores
Microsoft Works, an integrated office program which combined features typically found in a word processor, spreadsheet, database and other office applications, saw its first release as an application for the Apple Macintosh towards the end of 1986. On February 16, 1986, Microsoft relocated their headquarters to a corporate office campus in Redmond, Washington. Softletter estimated that in 1986 the “Big Three” of Lotus (9%), Microsoft (8%, more than $250 chikan road million), and Ashton-Tate (6%) together had 23% of total revenue of the top 100 microcomputer software companies. By then Forrester Research considered Microsoft, Ashton-Tate, Lotus Development, and Borland the “Big Four” of personal computer software. OS/2 was marketed in connection with a new hardware design proprietary to IBM, the PS/2.
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In August, Microsoft and IBM partnered in the development of a different operating system called OS/2. Ireland became home to one of Microsoft’s international production facilities in 1985, and on November 20 Microsoft released its first retail version of Microsoft Windows (Windows 1.0), originally a graphical extension for its MS-DOS operating system. Microsoft committed to develop Macintosh versions of Multiplan, Word, and Microsoft Chart; Apple agreed to not provide software development kits and prototype computers to companies with applications competing with Microsoft’s.
- To cope with the potential for an increase in demand for products and services, Microsoft opened a number of “holiday stores” across the U.S. to complement the increasing number of “bricks-and-mortar” Microsoft Stores that opened in 2012.
- The Kinect, a motion-sensing input device made by Microsoft and designed as a video game controller, was first introduced in November 2010, and was upgraded for the 2013 release of the eighth-generation Xbox One video game console.
- On December 19, 2007, Microsoft signed a five-year, $500 million (~$727 million in 2024) contract with Viacom that included content sharing and advertisements.
- Gates called Altair manufacturer Micro Instrumentation and Telemetry Systems (MITS), offering to demonstrate the implementation.
- In 2004, the company released Windows XP Media Center Edition 2005, a version of Windows XP designed for multimedia abilities, and Windows XP Starter Edition, a version of Windows XP with a smaller feature set designed for entry-level consumers.
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In December 2022, Microsoft announced a new 10-year deal with the London Stock Exchange for products including Microsoft Azure; Microsoft acquired ~4% of the latter company as part of the deal. On January 18, 2022, Microsoft announced the acquisition of American video game developer and holding company Activision Blizzard in an all-cash deal worth $68.7 billion. In October 2021, Microsoft announced that it began rolling out end-to-end encryption (E2EE) support for Microsoft Teams calls in order to secure business communication while using video conferencing software. On September 21, 2020, Microsoft announced its intent to acquire video game company ZeniMax Media, the parent company of Bethesda Softworks, for about $7.5 billion, with the deal expected to occur in the second half of 2021 fiscal year. On February 17, Microsoft released an update to its business line of software in Windows 2000. In March 1992, Microsoft released Windows 3.1 along with its first promotional campaign on TV; the software sold over three million copies in its first two months on the market.
Finally, a great deal of controversy took place when a set of internal memos from the company were leaked on the Internet. Microsoft launched its Indian headquarters as well, which would eventually become the company’s second largest after its U.S. headquarters. Windows CE 2.0, the handheld version of Windows, was released this year, including a host of bug fixes and new features designed to make it more appealing to corporate customers. In November 1996, Microsoft Office 97 was released, which is the first version to include Office Assistant.
present: Acquisitions, Xbox Series X/S, and Windows 11
In 1980, Microsoft formed a partnership with IBM to bundle Microsoft’s operating system with IBM computers; with that deal, IBM paid Microsoft a royalty for every sale.
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On March 26, 2020, Microsoft announced it was acquiring Affirmed Networks for about $1.35 billion (~$1.61 billion in 2024). In December 2018, Microsoft announced Project Mu, an open source release of the UEFI core used in Microsoft Surface and Hyper-V products. On October 8, 2017, Joe Belfiore announced that work on Windows 10 Mobile was drawing to a close due to lack of market penetration and resultant lack of interest from app developers. On September 15, 2014, Microsoft acquired the video game development company Mojang, best known for its wildly popular flagship game Minecraft, for $2.5 billion (~$3.25 billion in 2024). During the previous summer of 2015 the company wrote down $7.6 billion (~$9.8 billion in 2024) related to its mobile-phone business and fired 7,800 employees from those operations. In May 2016, the company announced it will lay off 1,850 workers, taking an impairment and restructuring charge of $950 million (~$1.21 billion in 2024).
With the release of the Microsoft Mouse on May 2, 1983, Microsoft continued to expand its product line in other markets. Later, the market saw a flood of IBM PC clones after Columbia Data Products successfully cloned the IBM BIOS, quickly followed by Eagle Computer and Compaq. In 1983, in collaboration with numerous companies, Microsoft created a home computer system, MSX, which contained its own version of the DOS operating system, called MSX-DOS; this became relatively popular in Japan, Europe and South America. Is widely recognized as the most influential company in the microcomputer-software industry.
While Microsoft largely failed to participate in the rise of the Internet in the early 1990s, some of the key technologies in which the company had invested to enter the Internet market started to pay off by the mid-90s. Microsoft entered the personal digital assistant (PDA) market in November with Windows CE 1.0, a new built-from-scratch version of their flagship operating system, designed to run on low-memory, low-performance machines, such as handhelds and other small computers. In an attempt to extend its reach in the consumer market, the company acquired WebTV, which enabled consumers to access the Web from their televisions.
In 2008, Microsoft wanted to purchase Yahoo (first completely, later partially) in order to strengthen its position on the search engine market vis-à-vis Google. On the advertisement side of the deal, Microsoft’s Atlas ad-serving division became the exclusive provider of previously unsold advertising inventory on Viacom owned web sites. The deal allowed Microsoft to license many shows from Viacom owned cable television and film studios for use on Xbox Live and MSN.
2020: Windows 10, Windows 10 Mobile, Microsoft Edge and HoloLens
In early September 2021, it was announced that the company had acquired Takelessons, an online platform which connects students and tutors in numerous subjects. The previous version of GPT-3, called GPT-2, made headlines for being “too dangerous to release” and had numerous capabilities, including designing websites, prescribing medication, answering questions, and penning articles. On September 22, 2020, Microsoft announced that it had an exclusive license to use OpenAI’s GPT-3 artificial intelligence language generator. On July 22, 2020, Microsoft announced plans to close its Mixer service, planning to move existing partners to Facebook Gaming.
It employs higher-end processing power and new software, can distinguish between fine movements (such as a thumb movements), and can determine a user’s heart rate by looking at his/her face. The Kinect, a motion-sensing input device made by Microsoft and designed as a video game controller, was first introduced in November 2010, and was upgraded for the 2013 release of the eighth-generation Xbox One video game console. To cope with the potential for an increase in demand for products and services, Microsoft opened a number of “holiday stores” across the U.S. to complement the increasing number of “bricks-and-mortar” Microsoft Stores that opened in 2012. On October 1, Microsoft announced its intention to launch a news operation, part of a new-look MSN, at the time of the Windows 8 launch that was later in the month. On July 31, 2012, Microsoft launched the Outlook.com webmail service beta to compete with Gmail.