IBM first approached Gates and Allen about Microsoft's upcoming IBM Personal Computer (IBM PC) in July 1980, shortly after Gates's mother began working on United Way's executive board with IBM CEO John Opel. (Earlier magazine on-disk distributions included Robert Uiterwyk's BASIC in the May 1977 issue of Information Age.) However, Xenix was never sold to end users directly although it was licensed to many software OEMs for resale. Word was first released in the spring of 1983, and free demonstration copies of the application were bundled with the November 1983 issue of PC World, making it one of the first programs to be distributed on-disk with a magazine. Skeptics questioned the system software vendor's decision to produce application software. The first operating system publicly released by the company was a variant of Unix announced on August 25, 1980.
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 also made Viacom a preferred publisher partner for casual game development and distribution through MSN and Windows. The deal allowed Microsoft to license many shows from Viacom owned cable television and film studios for use on Xbox Live and MSN.
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In the same month, Microsoft acquired Australia-based video editing software company Clipchamp. The announcement came with confusion after Microsoft announced Windows 10 would be the last version of the operating system; set to be released in the third quarter of 2021. 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. Apple has imposed a strict limit on "remote desktop clients" which means applications are only allowed to connect to a user-owned host device or gaming console owned by the user. On March 26, 2020, Microsoft announced it was acquiring Affirmed Networks for about $1.35 billion (~$1.61 billion in 2024). 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.
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Claiming more than a million installed MS-DOS machines, founder and chairman Bill Gates has decided to certify Microsoft's jump on the rest of the industry by dominating applications, operating systems, peripherals and, most recently, book publishing. Is widely recognized as the most influential company in the microcomputer-software industry. InfoWorld stated in 1984 that Microsoft, with $55 million (~$140 million in 2024) in 1983 sales, Due to potential copyright infringement problems with CP/M, IBM marketed both CP/M and PC DOS for US$240 and US$40, respectively, with PC DOS eventually becoming the standard because of its lower price. For this deal, Microsoft purchased a CP/M clone called 86-DOS from Tim Paterson of Seattle Computer Products for less than US$100,000, which IBM renamed to IBM PC DOS.
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It was an immediate success; 5,000 cards, a large number given the microcomputer market at the time, were purchased in the initial three months at $349 (~$1,112 in 2024) each and it was Microsoft's number one revenue source in 1980. It develops, manufactures, licenses, and supports a wide range of software products for computing devices. When Microsoft launched several versions of Microsoft Windows in the 1990s, they had captured over 90% market share of the world's personal computers.
The release included an updated version of the Windows 2000 kernel, enhanced DOS emulation abilities, and many of the home-user features found in previous consumer versions. 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. Microsoft also released the Microsoft Sidewinder 3D Pro joystick in an attempt to further expand its profile in the computer hardware market. On August 24, 1995, Microsoft released Windows 95, a new version of the company's flagship operating system which featured a completely new user interface, including a novel start button; more than a million copies were sold in the first four days after its release.
- By then Forrester Research considered Microsoft, Ashton-Tate, Lotus Development, and Borland the “Big Four” of personal computer software.
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- On September 3, 2013, Microsoft agreed to buy Nokia’s mobile unit for $7 billion (~$9.27 billion in 2024).
- Its “Manus’s Computer” interface lets users observe, pause or guide ongoing actions live, while a multi-agent system plans and executes workflows like data analysis, content creation and report generation.
- 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.
- The year 1998 was significant in Microsoft’s history, with Bill Gates appointing Steve Ballmer as president of Microsoft but remaining as chair and CEO himself.
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- On April 12, 2010, Microsoft launched their Kin phone line, a result of their acquisition of Danger Incorporated in 2008.
- On July 22, 2020, Microsoft announced plans to close its Mixer service, planning to move existing partners to Facebook Gaming.
- It grew to become the most popular version of Unix, measured by the number of machines running it (note that Unix is a multi-user operating system, allowing simultaneous access to a machine by several users).
- The announcement came with confusion after Microsoft announced Windows 10 would be the last version of the operating system; set to be released in the third quarter of 2021.
- In January 2023, CEO Satya Nadella announced Microsoft would lay off some 10,000 employees.
- 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.
- On September 22, 2020, Microsoft announced that it had an exclusive license to use OpenAI’s GPT-3 artificial intelligence language generator.
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 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.
The next update to the consumer line, Windows ME (or Windows Millennium Edition), was released on September 14, 2000. On June 15, 2000, the company released a new version of its hand-held operating system, Windows CE 3.0. Part of this ruling was later overturned by a federal appeals court, and eventually settled with the U.S. The documents also alluded to legal and other actions against Linux as well as other open source software.
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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 98 came with Internet Explorer 4.0 SP1 (which had Windows Desktop Update bundled), and included new features from Windows 95 OSR 2.x including the FAT32 file system, and new features designed for Windows 98, such as support for multiple displays. The year 1998 was significant in Microsoft's history, with Bill Gates appointing Steve Ballmer as president of Microsoft but remaining as chair and CEO himself. In November 1996, Microsoft Office 97 was released, which is the first version to include Office Assistant. 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.