History of Microsoft in Timeline

By Popular Timelines Editorial Team · Updated: July 12, 2026

Founded in 1975 by Bill Gates and Paul Allen, Microsoft is a global technology powerhouse headquartered in Redmond, Washington. The company initially gained prominence by developing the MS-DOS operating system and the widely adopted Windows platform, which became the standard for personal computing. Over the decades, Microsoft expanded its ecosystem through the Microsoft Office productivity suite and enterprise-grade cloud services like Azure. In recent years, the organization has pivoted toward artificial intelligence, heavily investing in OpenAI and integrating generative AI tools across its software portfolio. Additionally, Microsoft maintains a significant presence in the hardware and gaming sectors through its Surface line and Xbox brand. By balancing legacy software dominance with cutting-edge advancements in cloud computing and AI, Microsoft remains one of the world's most influential and valuable corporations, consistently driving digital transformation for both individual consumers and large-scale enterprises globally.

1972: Founding of Traf-O-Data

In 1972, childhood friends Bill Gates and Paul Allen established a business venture called Traf-O-Data, which focused on creating and selling a basic computer system designed for the analysis and tracking of automobile traffic data.

January 1975: Popular Electronics Features Altair 8800

In January 1975, the magazine Popular Electronics published a feature on the MITS Altair 8800 microcomputer, which served as the primary inspiration for Gates and Allen to develop a BASIC interpreter.

March 1975: Demonstration of Altair BASIC

In March 1975, Bill Gates and Paul Allen successfully demonstrated a working BASIC interpreter for the Altair to MITS in Albuquerque, New Mexico, leading to a distribution agreement for the product.

April 4, 1975: Founding of Microsoft

On April 4, 1975, Bill Gates and Paul Allen officially established Microsoft, with Gates serving as the CEO and Allen coining the original name 'Micro-Soft'.

1975: Founding of Microsoft

In 1975, Bill Gates and Paul Allen founded Microsoft with the primary goal of marketing BASIC interpreters for the Altair 8800 computer.

August 1977: First International Office Established

In August 1977, Microsoft expanded its global presence by forming an agreement with ASCII Magazine in Japan to open its first international branch, ASCII Microsoft.

January 1979: Relocation to Bellevue

In January 1979, Microsoft officially relocated its corporate headquarters to Bellevue, Washington.

November 1980: IBM-Microsoft OS Contract

In November 1980, IBM awarded Microsoft a contract to provide an operating system for the upcoming IBM Personal Computer, leading Microsoft to acquire and rebrand 86-DOS as MS-DOS.

1980: Steve Ballmer Joins Microsoft

In 1980, Steve Ballmer joined Microsoft as an employee, eventually rising to become the company's leader two decades later.

August 1981: Release of the IBM PC

The IBM PC was released in August 1981, marking the debut of the hardware for which Microsoft retained ownership of the MS-DOS operating system.

1983: 1983 Expansion and Leadership Changes

During 1983, Microsoft expanded into new markets by releasing the Microsoft Mouse and establishing Microsoft Press, while co-founder Paul Allen resigned from the company following a Hodgkin's lymphoma diagnosis.

November 20, 1985: Release of Windows 1.0

On November 20, 1985, Microsoft officially released Windows 1.0, which functioned as a graphical interface extension for the MS-DOS operating system.

February 26, 1986: Relocation of Microsoft Headquarters

On February 26, 1986, Microsoft officially relocated its corporate headquarters from Bellevue to its new campus in Redmond, Washington.

1986: Microsoft Initial Public Offering

Microsoft held its initial public offering (IPO) in 1986, which resulted in a significant rise in share price and created numerous millionaires and billionaires among the company's staff.

April 2, 1987: Release of OS/2 to OEMs

Microsoft provided its version of the OS/2 operating system to original equipment manufacturers (OEMs) on April 2, 1987, as part of their collaborative efforts with IBM.

1988: Inception of Per-Processor Licensing Practices

Beginning in 1988, Microsoft implemented a controversial licensing strategy where they required computer manufacturers to pay royalties for every microprocessor shipped, effectively penalizing OEMs for choosing non-Microsoft software, a practice identified in a 1994 government filing.

1990: Introduction of Microsoft Office

In 1990, Microsoft officially introduced the Microsoft Office suite, a bundle that combined previously separate software applications like Microsoft Word and Microsoft Excel into a single package.

1990: FTC Investigation into Microsoft

In 1990, the Federal Trade Commission initiated an examination of Microsoft regarding potential collusion stemming from its partnership with IBM, marking the start of prolonged legal disputes with the government.

July 21, 1993: Shipment of Windows NT

On July 21, 1993, Microsoft shipped Windows NT, featuring a new modular kernel and the 32-bit Win32 API to facilitate transitions from 16-bit MS-DOS architectures.

July 27, 1994: Department of Justice Files Antitrust Statement

On July 27, 1994, the U.S. Department of Justice Antitrust Division released a competitive impact statement detailing how Microsoft had been unfairly inducing Original Equipment Manufacturers (OEMs) to pay royalties for microprocessors, even when no Microsoft software was installed on the machines.

1994: Original Justice Department Agreement

In 1994, Microsoft entered into an agreement with the U.S. Justice Department regarding its business practices, which would later become the focus of a legal dispute in October 1997.

May 26, 1995: The Internet Tidal Wave Memo

On May 26, 1995, Bill Gates issued an internal document known as the "Internet Tidal Wave memo," which served as a strategic turning point for Microsoft to pivot its focus toward the World Wide Web and computer networking technologies.

August 24, 1995: Release of Windows 95

On August 24, 1995, Microsoft officially launched Windows 95, introducing major innovations including pre-emptive multitasking, a 32-bit architecture supporting the Win32 API, and a revolutionary user interface that debuted the start button.

1996: Expansion into Media and Embedded Systems

During 1996, Microsoft diversified its operations by partnering with NBC to launch the MSNBC cable news channel and releasing Windows CE 1.0, an operating system tailored for resource-constrained hardware like personal digital assistants.

October 1997: Justice Department Legal Action

In October 1997, the U.S. Justice Department filed a motion in Federal District Court alleging that Microsoft had breached a 1994 consent decree by requiring computer manufacturers to bundle the Internet Explorer web browser with the Windows operating system.

January 13, 2000: Steve Ballmer Becomes CEO

On January 13, 2000, Bill Gates transitioned from the role of CEO to Chief Software Architect, appointing his long-time associate Steve Ballmer as the new CEO of Microsoft.

2000: CEO Leadership Transition

In 2000, Steve Ballmer officially replaced Bill Gates as the Chief Executive Officer of Microsoft.

October 25, 2001: Launch of Windows XP

On October 25, 2001, Microsoft officially launched Windows XP, a significant milestone that unified the company's mainstream and NT operating system lines under a single NT-based codebase.

March 2004: Antitrust Judgment

In March 2004, a legal judgment was passed against Microsoft regarding its business practices, which would later become the subject of European Union non-compliance fines.

March 2004: European Union Antitrust Action

In March 2004, the European Union took legal action against Microsoft for antitrust violations, alleging the company abused its market dominance. The resulting judgment included a €497 million fine and a mandate to release versions of Windows XP that did not include Windows Media Player.

November 2005: Release of Xbox 360

In November 2005, Microsoft expanded its footprint in the gaming industry by releasing the Xbox 360, which went on to become the company's most successful video game console.

June 2006: Announcement of Bill Gates' Retirement Plans

In June 2006, Microsoft announced that Bill Gates would eventually retire from his role as Chief Software Architect.

2006: Launch of the Zune digital media player series

In 2006, Microsoft expanded its footprint in the hardware industry by releasing the Zune series of digital media players, which served as a follow-up to the earlier Portable Media Center software platform.

January 2007: Launch of Windows Vista and Microsoft Office 2007

In January 2007, Microsoft released Windows Vista, which featured a redesigned interface called Aero, alongside Microsoft Office 2007, which introduced the Ribbon user interface.

February 27, 2008: European Union Antitrust Fine

On February 27, 2008, the European Union imposed a fine of €899 million on Microsoft for failing to comply with a 2004 judgment regarding the pricing of server information provided to competitors.

June 27, 2008: Bill Gates Retires as Chief Software Architect

On June 27, 2008, Bill Gates officially retired from his position as Chief Software Architect, transitioning to an advisory role for the company.

October 27, 2008: Launch of Azure Services Platform

On October 27, 2008, Microsoft entered the cloud computing market with the launch of its Azure Services Platform.

February 12, 2009: Announcement of Microsoft Retail Stores

On February 12, 2009, Microsoft revealed its plan to establish a chain of physical, company-branded retail stores.

October 22, 2009: Microsoft Store Opening and Windows 7 Launch

On October 22, 2009, the first physical Microsoft Store opened in Scottsdale, Arizona, on the same day that the Windows 7 operating system was officially released to the public.

2010: Release of Windows Phone OS

In 2010, Microsoft replaced its aging Windows Mobile operating system with the brand new Windows Phone OS. This release featured a new, minimalist design language known as Metro, which prioritized simple shapes and iconography to provide a consistent user experience across smartphones.

March 23, 2011: Founding of the Open Networking Foundation

On March 23, 2011, Microsoft became a founding member of the Open Networking Foundation. This nonprofit organization was established to promote Software-Defined Networking, a cloud computing initiative designed to accelerate innovation in telecommunications, wireless networks, and data centers.

2011: Acquisition of Skype Technologies

During 2011, under the leadership of Steve Ballmer, Microsoft completed the acquisition of Skype Technologies, marking the largest corporate purchase for the company at that time.

2012: Launch of Surface Hardware

In 2012, Microsoft shifted focus toward hardware with the launch of its first in-house personal computer line, known as the Surface.

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2014: Satya Nadella Appointed CEO

Satya Nadella took over as the CEO of Microsoft in 2014, steering the company's strategic focus toward cloud computing.

2016: Acquisition of LinkedIn

In 2016, Microsoft expanded its portfolio by acquiring the professional networking platform LinkedIn.

April 2019: Microsoft Reaches $1 Trillion Market Valuation

In April 2019, Microsoft achieved a significant financial milestone by becoming the third publicly traded company in the United States to surpass a market valuation of $1 trillion.

2022: Formation of Microsoft Gaming

Microsoft established the dedicated Microsoft Gaming division in 2022 to centralize and expand its video game business operations under the Xbox brand.