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 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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When the IBM PC debuted, Microsoft was the only company that offered operating system, programming language, and application software for the new computer. 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. 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. By the mid-1980s Microsoft had gotten out of the Unix business, except for its ownership stake in SCO. 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).
2007: Foray into the Web, Windows 95, Windows XP, and Xbox
- 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.
- Microsoft also announced a new multi-year, multi-billion dollar investment deal with OpenAI.
- The company also released the Microsoft SQL Server 6.5, which had built-in support for internet applications.
- On May 10, 2011, the company acquired Skype Technologies for US$8.5 billion (~$11.7 billion in 2024).
- 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 released Windows XP and Office XP in 2001, a version that aimed to encompass the features of both its business and home product lines.
- The documents also alluded to legal and other actions against Linux as well as other open source 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."). The company's first international office was founded on November 1, 1978, in Japan, entitled "ASCII Microsoft" (now called "Microsoft Japan"), and on November 29, 1979, the term, "Microsoft" was first used by Bill Gates. Allen came up with the original name of Micro-Soft, a portmanteau of microcomputer and software. As of June 30, 2015, Microsoft has a global annual revenue of US$86.83 billion (~$112 billion in 2024) and 128,076 employees worldwide. 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 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. 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.
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In January 2023, CEO Satya Nadella announced Microsoft would lay off some 10,000 employees. Microsoft has not released statements regarding Activision's recent legal controversies regarding employee abuse, but reports have alleged that Activision CEO Bobby Kotick, a major target of the controversy, will leave the company after the acquisition is finalized. Microsoft plans to incorporate Ally.io into its Viva family of employee experience products.
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. 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). 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. 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.
- 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.
- The Microsoft Store Awards honor outstanding applications that elevate user experiences, drive productivity and inspire creativity across the Windows ecosystem.
- 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.
- 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.
- Microsoft also launched Slate, an online magazine edited by Michael Kinsley, which offered political and social commentary along with the cartoon Doonesbury.
- Native Windows integration (taskbar pinning, quick‑launch and offline access) helps users act faster without context switching.
The app’s secure digital record-keeping, multi-channel communication and rapid document sharing make it a comprehensive solution for business owners seeking efficiency and control. Dashboard analytics provide real-time tracking of payments and expenses, while support for multiple payment gateways and formats ensures flexibility for freelancers and SMEs. Moon Invoice’s Invoice Maker & Estimate Creator automates business finance tasks with customizable templates, and instant printing and sharing via WhatsApp or email. Perplexity’s Windows app features native voice dictation, multi-modal AI search and deep desktop integration for rapid research. We are proud to announce this year’s winners, each exemplifying technical excellence, user satisfaction and transformative potential. The Microsoft Store Awards honor outstanding applications that elevate user experiences, drive productivity and inspire creativity across the Windows ecosystem.
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. 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. InfoWorld stated in 1984 that Microsoft, with $55 million (~$140 million in 2024) in 1983 sales,
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. 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. 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. 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.
During the transition from MS-DOS to Windows, the success of Microsoft Office allowed the company to gain ground on application-software competitors, such as WordPerfect and Lotus 1-2-3. By 1989 Jerry Pournelle described Microsoft as "the Redmond giant", citing PowerPoint's features and "extraordinarily complete" documentation as examples of the "kind of quality that makes it difficult for small outfits to compete with" the company. In an internal memo to Microsoft employees on May 16, 1991, Bill Gates announced that the OS/2 partnership was over, and that Microsoft would henceforth focus its platform efforts on Windows and the Windows NT kernel. Windows at the time generated more revenue for Microsoft than OS/2, and the company decided to move more resources from OS/2 to Windows. 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.
The successor to Windows Phone 8.1, Windows 10 Mobile, was released November 20, 2015. 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).
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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. 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.
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. Microsoft also marketed through an Apple dealer in West Palm Beach, Florida two products for the Radio-Shack TRS-80. “What unites us all is our commitment to the user, whether the user is at their office, at their desk, or working somewhere out in the wild.” The app features Karaoke mode for any track in any app (lyrics optional), letting users sing along or create custom mixes instantly.
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. 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). The console was also outsold by the Wii, which introduced gesture control and opened up lopebet 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.
On November 10, 2020, Microsoft released the Xbox Series X and Xbox Series S video game consoles. On September 22, 2020, Microsoft announced that it had an exclusive license to use OpenAI’s GPT-3 artificial intelligence language generator. 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.
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 (~$9.27 billion in 2024). 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 July 31, 2012, Microsoft launched the Outlook.com webmail service beta to compete with Gmail.
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. In November 1996, Microsoft Office 97 was released, which is the first version to include Office Assistant.