Formerly codenamed «Longhorn» in the early development stages, Windows Vista was released to consumers on January 30, 2007. On June 15, 2006, Bill Gates announced his plans for a two-year transition period out of a day-to-day role with Microsoft until July 31, 2008. Activity grew quickly as developers from around the world began to participate, and by early 2007 commercial open source companies, such as Aras Corp. began to offer enterprise open source software exclusively on the Microsoft platform. In guise of competing with other Internet Companies such as the search service Google, in 2005 Microsoft announced a new version of its MSN search service.
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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. In April 2021, Microsoft announced it would buy Nuance Communications for approximately $16 billion (~$18.2 billion in 2024). 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.
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The operating system was the first to require Microsoft Product Activation, an anti-piracy mechanism that requires users to activate the software with Microsoft within 30 days. 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. The documents also alluded to legal and other actions against Linux as well as other open source software. 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. 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.
- This effectively ended the formal business partnership between Gates and Allen, which had been strained months prior due to a contentious dispute over Microsoft equity.
- 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.
- Later, in 2006, the company launched Microsoft adCenter, a service that offers pay per click advertisements, in an effort to further develop their search marketing revenue.
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). Later, in 2006, the company launched Microsoft adCenter, a service that offers pay per click advertisements, in an effort to further develop their search marketing revenue. In 2002, Microsoft launched the .NET initiative, along with new versions of some of its development products, such as Microsoft Visual Studio.
2007: Foray into the Web, Windows 95, Windows XP, and Xbox
(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. This effectively ended the formal business partnership between Gates and Allen, which had been strained months prior due to a contentious dispute over Microsoft equity. The company restructured on June 25, 1981, to become an incorporated business in its home state of Washington (with a further change of its name to «Microsoft Corporation, Inc.»).
1994: Windows and Office
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. Microsoft also launched Slate, an online magazine edited by Michael Kinsley, which offered political and social commentary along with the cartoon Doonesbury. The station was launched on July 15, 1996, to compete with similar news outlets such as CNN. The company continued to branch out into new markets in 1996, starting with a joint venture with NBC to create a new 24-hour cable news television station, MSNBC. On August 24, 1995, it launched a major online service, MSN (Microsoft Network), as a direct competitor to AOL.
However, Microsoft encountered more turmoil in March 2004 when antitrust legal action would be brought against it by the European Union for allegedly abusing its market dominance (see Microsoft Corp. v. Commission). 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. Windows Server 2003 was launched, featuring enhanced administration abilities, such as new user interfaces to server tools. The console was also outsold by the Wii, which introduced gesture control and opened up a new market for video games. Microsoft launched their second console, the Xbox 360, in 2005 – which was more successful than the original. Microsoft entered the multibillion-dollar game console market dominated by Sony and Nintendo, with the release of the Xbox.
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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. On February 20, 2019, Microsoft Corp said it will offer its cyber security service AccountGuard to 12 new markets in Europe including Germany, France and Spain, to close security gaps and protect customers in political space from hacking. 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. December also saw the company rebuilding Microsoft Edge as a Chromium-based browser; it was publicly released on January 15, 2020.
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. 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. A developer preview was released on September 13, and was replaced by a consumer preview on February 29, 2012. Following the release of Windows Phone, Microsoft underwent a gradual rebranding of its product range throughout 2011 and 2012—the corporation’s logos, products, services and websites adopted the principles and concepts of the Metro design language.
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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. 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. Is widely recognized as the most influential company in the microcomputer-software industry.
On July 29, 2015, Microsoft released the next version of the Windows operating system, Windows 10. On January 21, 2015, Microsoft announced the release of their first Interactive whiteboard, Microsoft Surface Hub (part of the Surface family). 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). On April 25, 2014, Microsoft acquired Nokia Devices and Services for $7.2 billion (~$9.37 billion in 2024). The Alliance for Affordable Internet (A4AI) was launched in October 2013 and Microsoft was part of the coalition of public and private organizations that also included Facebook, Intel and Google. On September 3, 2013, Microsoft agreed to buy Nokia’s mobile unit for $7 billion chicken road games (~$9.27 billion in 2024).
present: Acquisitions, Xbox Series X/S, and Windows 11
- On May 10, 2011, the company acquired Skype Technologies for US$8.5 billion (~$11.7 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.
- 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.
- Within hours, CrowdStrike released a patch for the faulty update that prevented future crashes, but affected computers had to be fixed manually, so problems persisted for some time.
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. On December 19, 2007, Microsoft signed a five-year, $500 million (~$727 million in 2024) contract with Viacom that included content sharing and advertisements. 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. Microsoft also released a new version of its Office suite, called Microsoft Office 2007, alongside Windows Vista.
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. OS/2 was marketed in connection with a new hardware design proprietary to IBM, the PS/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.
On May 10, 2011, the company acquired Skype Technologies for US$8.5 billion (~$11.7 billion in 2024). On April 12, 2010, Microsoft launched their Kin phone line, a result of their acquisition of Danger Incorporated in 2008. On June 26, 2009, Microsoft started taking pre-orders at a discounted price for Windows 7 which was launched on October 22, 2009. During the show, Ballmer announced the first public Beta Test of Windows 7 for partners and developers on January 8, but also for the general public two days later. 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.