Microsoft Windows has been a dominant force in the desktop computing landscape for decades. What started as a graphical user interface (GUI) add-on for MS-DOS has become the world‘s most widely-used desktop operating system from the mid-90s through today. The road from the original Windows 1.0 release to the latest Windows 11 has been full of twists and turns. This journey shaped personal computing for generations of users.
The Need for a GUI
Windows traces its origin back to the early 1980s. At the time, Microsoft had created MS-DOS (Microsoft Disk Operating System) to be used in IBM‘s new personal computers. MS-DOS provided essential low-level functionality, but required the user to type all commands and navigate the file system solely with a command line interface.
Meanwhile, visionaries like Steve Jobs at Apple could see that the future was in graphical user interfaces. Apple launched the LISA computer in 1983 featuring such a GUI, complete with clickable icons, menus, and the now standard mouse and pointer setup.
Seeing this, Bill Gates and his Microsoft team realized that the MS-DOS command line alone would not be sufficient for long. As shared with ComputerWorld in 1987 during the early Windows days, Gates stated: "The next generation of interesting software will be done on the Macintosh, not the IBM PC." He was determined to bring a graphical user interface to DOS to stay competitive in the personal computing race.
Licensing GUI Elements from Apple
Initially, Apple threatened Microsoft, claiming they stole intellectual property to create Windows 1.0. Apple‘s legal team asserted that the similar visual style and design elements in Windows 1 lifted code directly from Apple‘s Macintosh project.
To avoid a lengthy legal battle and be able to move forward with Windows development, Microsoft and Apple reached a licensing agreement in 1985. This deal allowed Microsoft to legally replicate certain aspects of the Macintosh GUI like windows, icons and menus in exchange for an undisclosed licensing fee. Steve Jobs also negotiated an arrangement to have Microsoft port its Office suite over to Mac, a huge win for Apple.
The Xerox PARC Defense
The legal threats also led Bill Gates to revise the Windows origin story in interviews. In later discussions of Windows 1.0‘s development, Gates instead credited much inspiration to the groundbreaking graphical interface work done at Xerox PARC. Their Alto computer system in the 1970s pioneered the WYSIWYG editor interface and mouse input we associate with GUIs today.
Gates noted that Apple itself had derived many core GUI concepts from PARC‘s earlier efforts, as both Microsoft and Apple engineers had consulted with Xerox researchers and seen demos of the Alto system years before Windows or Macintosh debuted. By citing this additional prior art around graphical interfaces at PARC, Gates deflected some claims that Windows merely copied Mac OS.
In reality, both the innovative work at PARC and the huge commercial success of Apple‘s Macintosh GUI likely spurred Microsoft to quickly pivot DOS into the similar visual direction. But the details around the exact sharing of ideas and inspiration across companies is still debated decades later. Regardless, securing the legal right to iterate on the established GUI concepts paved the way for Microsoft to build Windows 1.0 without delays.
Windows 1.0 – The First Release
In November 1985, after nearly two years of development, Microsoft launched Windows 1.0. Priced at $99 (over $240 in 2022 dollars accounting for inflation), it provided a new graphical layer that could run on top of DOS. Drivers allowed it to detect mice and other pointing devices. It introduced iconic representations of programs and files that could be clicked on rather than typed file paths. Overlapping, resizeable windows and multitasking made Windows a major innovation for the PC world.
However, Windows 1.0 still had a long way to go. It only supported 16 colors and needed more work on memory management for smooth performance. But despite a relatively rough start and some legal threats from Apple, the foundation was there for Microsoft‘s ambitions. Subsequent releases included major improvements that eventually made Windows into the standard we know today.
Version Comparison: Windows 1.0 vs. 2.0
While innovative for its time, Windows 1.0 lacked polish in many areas. Instability, limited hardware support, and inadequate multitasking capabilities made for a rocky experience. Microsoft took user and developer feedback to heart, and the follow-up Windows 2.0 update in 1987 addressed many early complaints.
Windows 2.0 delivered true overlapping document windows, greater color depth up to 256 colors, and more PC hardware compatibility like EGA/VGA and Hercules graphics. Boosted performance and reliability made 2.0 far more daily-driver ready. These iterative improvements set the template for constant version revamps still seen in Windows releases today.
Windows Hits its Stride – 3.1 and 95
Over the next decade, Microsoft iterated on Windows rapidly, releasing new versions on nearly an annual basis in the early 90s. Windows 3.0, launched in 1990, sold over 3 million copies in its first year thanks to improved performance and file management. Its follow-up Windows 3.1 became a global phenomenon, selling nearly 3 million copies within its first 2 months in 1992. By addressing previous complaints and adding TrueType fonts and multimedia support, it became the top OS for everyday computing use by 1993.
In fact, Windows 3.1 single-handedly propelled Microsoft Windows to 85% market share across all PCs by the end of 1993. Nearly 50 million PCs were running various forms of Windows at that time according to Dataquest research. As competitors like IBM‘s OS/2 struggled for traction, Windows became the de facto standard for desktop operating systems at home and work during this era.
Market Dominance
Microsoft‘s overwhelming market lead continued through the release of Windows 95 in August 1995. Windows 95 upgrades and pre-installed versions moved over 100 million PCs to the new OS within 8 months per Dataquest numbers again. That represents a staggering $2 billion+ in revenue from the OS alone near the end of 1995.
Extending Windows support and development to partners like Intel helped fuel rapid adoption. Windows also benefited as Apple experienced struggles in the mid-90s that eroded their innovator position. Windows 95‘s reign secured MS‘s market share at over 85% through the late 90s, cementing its place as the OS empire for desktop computing.
In 1995, Microsoft also faced down one of the earliest antitrust lawsuits around its monopoly position with Windows and Office. Critics alleged that Microsoft‘s restrictive OEM licensing deals edged out competitors unfairly. While Microsoft reached a settlement in the case, similar legal action would continue dogging the company even through its unmatched Windows peak.
Game-Changing Release – Windows XP
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