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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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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.

• 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.
• 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).
• 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.
• On July 31, 2012, Microsoft launched the Outlook.com webmail service beta to compete with Gmail.
• 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 November 10, 2020, Microsoft released the Xbox Series X and Xbox Series S video game consoles.
• 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).

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.
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. 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.

• 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.
• In 2002, Microsoft launched the .NET initiative, along with new versions of some of its development products, such as Microsoft Visual Studio.
• Microsoft Works, an integrated office program which combined features typically found in a word processor, spreadsheet, database and other office applications, saw its first release as an application for the Apple Macintosh towards the end of 1986.
• When the IBM PC debuted, Microsoft was the only company that offered operating system, programming language, and application software for the new computer.
• 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.
• It develops, manufactures, licenses, and supports a wide range of software products for computing devices.

1994: Windows and Office

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 lopebet software.

2014: Windows 8, Xbox One, Outlook.com, and Surface devices

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.

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As part of its strategy to broaden its business, Microsoft released Microsoft Encarta on March 22, 1993, the first encyclopedia designed to run on a computer. Microsoft also released Windows for Workgroups 3.11, a new version of the consumer line of Windows, and Windows NT 3.1, a server-based operating system with a similar user interface to consumer versions of the operating system, but with an entirely different kernel. In November, Microsoft released the first version of their popular database software Microsoft Access. Eventually, Microsoft Office became the dominant business suite, with a market share far exceeding that of its competitors. Novell, an owner of WordPerfect for a time, alleged that Microsoft used its inside knowledge of the DOS and Windows kernels and of undocumented Application Programming Interface features to make Office perform better than its competitors.

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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.

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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. FORTUNE may receive compensation for some links to products and services on this website. “That they workers are empowered to have that information—the ideas about what’s happening and unfurling in the market—is so important, so that when they go back to the bargaining table, their everyday jobs, and the ways that they touch our everyday lives, they’re going to be informed,” said Danzico.
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.
The game’s family-friendly design, scalable performance and strong security features make it ideal for all ages and devices, ensuring engaging gameplay and creative kingdom building for every player. The app closely mirrors the web experience while providing unique Windows-only productivity enhancements, including IT policy controls and a privacy-first approach for business users. 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.
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. 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).
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).