Microsoft Corporation is a major developer and publisher of software for personal computers. The company also produces software for the operation of electronic devices other than computers. In addition, Microsoft operates a number of online services and produces the popular Xbox line of video game consoles. The company has headquarters in Redmond, Washington.
Microsoft began in 1975 as an informal business partnership between former schoolmates Bill Gates and Paul Allen. The two men adapted the programming language BASIC (Beginner’s All-purpose Symbolic Instruction Code) for use with the earliest home computer, the MITS (Micro Instrumentation and Telemetry Systems) Altair 8800. They were soon writing programs for other manufacturers’ computers. In 1980, International Business Machines Corporation (IBM) chose Microsoft to develop the operating system for its first personal computer, the PC. An operating system is the main program for controlling a computer’s functions. Millions of copies of the Microsoft Disk Operating System (MS-DOS) were sold for use in IBM and IBM-compatible personal computers.
In 1985, Microsoft introduced the first of a series of operating systems called Windows. These programs employ a graphical user interface (GUI), which allows people to issue commands by pointing to on-screen symbols and clicking a mouse rather than by typing instructions. The program also enables users to perform multiple tasks, each in a different “window” on the computer screen. Microsoft has sold tens of millions of copies of Windows. The company also makes other software products and services for business and consumer use. They include Excel, a spreadsheet program; Word, a word-processing program; and Bing, a search engine.
Beginning in the 1990’s, Microsoft faced legal challenges in the United States and in Europe. Lawsuits against the company charged that it used unfair practices to gain advantage over its competitors. A United States district court judge and European Union (EU) regulators ruled that Microsoft abused its near-monopoly in computer operating systems to destroy competition. In 2002, the company reached an agreement with the U.S. Department of Justice. In 2004, the EU imposed a fine of more than $600 million (U.S.) and strict controls over the features Microsoft may incorporate into versions of Windows produced for sale in Europe.
Microsoft has made major acquisitions of other technology companies. These acquisitions include such communications companies as the internet video-call service Skype, acquired for $8.5 billion in 2011, and the phone division of Nokia Corporation, acquired for $7.2 billion in 2014. Microsoft sold Nokia in 2016. Microsoft owns several important electronic game companies, including Mojang (acquired for $2.5 billion in 2014), ZeniMax (acquired for $7.5 billion in 2021), and Activision Blizzard (acquired for $69 billion in 2023).
