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.

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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. 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.
On July 22, 2020, Microsoft announced plans to lopebet 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. December also saw the company rebuilding Microsoft Edge as a Chromium-based browser; it was publicly released on January 15, 2020. On June 8, 2017, Microsoft acquired Hexadite, an Israeli security firm, for $100 million (~$125 million in 2024).

2007: Foray into the Web, Windows 95, Windows XP, and Xbox

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.
Microsoft will launch a preview of Intune for Education "in the coming weeks", with general availability scheduled for spring 2017, priced at $30 (~$38.00 in 2024) per device, or through volume licensing agreements. The server sibling to Windows 10, Windows Server 2016, was released in September 2016. In June 2016, Microsoft announced a project named Microsoft Azure Information Protection. On March 1, 2016, Microsoft announced the merge of its PC and Xbox divisions, with Phil Spencer announcing that Universal Windows Platform (UWP) apps would be the focus for Microsoft's gaming in the future.
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.
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.

• Microsoft entered the multibillion-dollar game console market dominated by Sony and Nintendo, with the release of the Xbox.
• With the release of the Microsoft Mouse on May 2, 1983, Microsoft continued to expand its product line in other markets.
• In November 1996, Microsoft Office 97 was released, which is the first version to include Office Assistant.
• In October, Windows for Workgroups 3.1 was released with integrated networking abilities such as peer-to-peer file and printing sharing.
• On October 7, Microsoft acquired Ally.io, a software service that measures companies’ progress against OKRs.

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 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. 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. The company released Microsoft Bob, a graphical user interface designed for novice computer users, in March 1995.

1994: Windows and Office

• 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.
• (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.
• Meanwhile, that month, the company announced a subscription offering of artificial intelligence for small businesses via Copilot Pro.
• The app features Karaoke mode for any track in any app (lyrics optional), letting users sing along or create custom mixes instantly.
• 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 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 station was launched on July 15, 1996, to compete with similar news outlets such as CNN.

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.

2011: Microsoft Azure, Windows Vista, Windows 7, and Microsoft Stores

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.
The research laboratory oversees the firm’s consumer AI products, which includes Microsoft Copilot—its Gen AI chatbot which runs on OpenAI’s large language models. For example, a product team can use a “Sprint Planning” template that auto‑populates tasks from a roadmap page, sends reminders and updates progress charts to help free time for design and decision making. Native Windows integration (taskbar pinning, quick‑launch and offline access) helps users act faster without context switching. Moises Live is an exclusive app that sets a new standard for music apps by harnessing real-time AI audio separation technology. Castle Craft delivers an immersive gaming experience, leveraging Windows hardware for smooth, dynamic resource merging and time-travel exploration. 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.
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,

Microsoft AI’s design head wants her team to be AI-native by the end of the fiscal year

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 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.
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 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 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.