The 50 Best (and Worst) Moments in Windows History

In just a few days, Microsoft at long last will officially release Windows 7 to an eager public ready to put the Vista saga behind them. It's a been a long wait, particularly for those who opted to stick with XP until something better came along, but no matter how you feel about Vista, it's been an even longer ride getting to this point.
With the release of Windows 1.0 way back in 1987, Microsoft set in motion a series of events that would ultimately change the way the entire world uses their computers. It's pretty amazing when you stop and think about just how many businesses around the globe rely on Windows.
Of course, Windows' storied history isn't without its many bumps and bruises along the way, from record setting fines for anti-competitive practices to controversies surrounding Microsoft's WGA scheme. As Microsoft gears up to release its greatest OS to date, we celebrate the occasion by taking a trip down memory lane to where it all began, and how we got to this point. We cover the good, the bad, and the downright ugly.
So sit back, hit the jump, and enjoy the ride!
It All Begins with Windows 1.0
Circa 1985

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What would eventually become the most dominant OS on the planet was born out of a project started in 1981 called "Interface Manager." This would later be renamed to Windows and Microsoft would introduce Windows 1.01 to the public in November 1985.
Essentially a shell designed to run on top of MS-DOS 5.0, the Windows GUI traded in a command prompt for point-and-click computing via the now ubiquitous computer mouse. The 16-bit OS retailed for $99, which at the time was enough to buy nearly 91 gallons of unleaded gas or watch Back to the Future in the movie theater 36 times. It was only available on floppy disks and took up about 1MB of hard drive space, but would later consume around 2.2MB in version 1.03 (released in 1986).
Because Apple owned the right to have overlapping windows in the GUI, Windows 1.0 was limited to using tiled windows, though an exception was made for dialog boxes only.
Fun Fact: Steve Ballmer appeared in a short ad energetically promoting the OS well before Billy Mays became a household name. You can view the grainy YouTube video (and have a good laugh) here.
Windows 2.0
Circa 1987

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Two years after the release of Windows 1.01, Microsoft would follow suit with version 2.0. Unlike the original release, this new version supported overlapping windows. It also greatly enhanced the UI with the addition of icons, better graphics, a control screen layout, and keyboard shortcuts. On the performance side, Windows 2.0 supported expanded memory. Later on, version 2.03 would take advantage of the protected mode and extended memory capabilities of Intel's 386 architecture.
Whereas Windows 1.0 never saw any significant sales numbers, version 2.x would be a much bigger hit. It also more closely resembled the Apple's Macintosh platform, so much so that Apple in 1988 would file a suit against Microsoft for allegedly infringing 189 of Apple's copyrights on "visual displays."
Late 1980s Tech Boom: Several tech companies were founded in the late 1980s, including VIA, Apogee, and ECS in 1987, Promise, Trend Micro, and Xircom in 1988, and EPoX, Abit, Asus, the PCMCIA trade association, Citrix, and S3 in 1989.
Microsoft Announces its First Ever Windows Application (Excel)
Circa 1987

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In 1985, Microsoft released it's first version of Excel for the Macintosh platform. Two years later, Microsoft would port the spreadsheet software over to its own operating system, making it the first app for Windows ever developed by Microsoft. It was labeled version 2.05 to coincide with its Mac counterpart.
Meanwhile, Lotus Software (now owned by IBM) was busy marketing Lotus 1-2-3, a popular spreadsheet program that helped drive PC sales in the business sector. Lotus Software may have underestimated the Windows platform, and because it was late in bringing a version of Lotus 1-2-3 over to Windows in 1987, Excel was able to capitalize on its advantage and had leapfrogged Lotus in sales by 1988.
Now a part of Microsoft Office, Excel is the most used spreadsheet program on the planet.
Microsoft Surpasses Lotus as No. 1 Software Vendor
Circa 1988

The rapid success of Excel, as noted above, combined with the growing audience of Windows users propelled Microsoft past Lotus Software as the No. 1 software vendor in the world. By the end of the year, Microsoft's revenue had reached $590.8 million, up from $345.9 million a year prior, and its worker-base 2,793 employees strong, up from 1,815 employees in 1987..
Windows 3.0
Circa 1990

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The third major release of Windows represented a major overhaul of the base OS and a recognition by Microsoft that the whole GUI thing had a major future. Not that this was ever in doubt, considering Microsoft managed to sell around 10 million copies before the release of 3.1. Microsoft attributes part of the success to a "new wave of 386 PCs," and it certainly didn't hurt that some PC manufacturers for the first time had begun pre-installing Windows on PCs rather than including the disks with a computer purchase.
Other keys to version 3.0's success were the ability to address memory beyond 640K and the release of a new Windows software development kit (SDK). For the most part, the widespread hardware and developer support enjoyed on the Windows platform can be traced back to this release.
In October 1991, Microsoft would release Windows 3.0a with Multimedia Extensions designed to support CD- ROM drives and soundcards.
Did You Know?: Windows 3.0 would be the last version of Windows to advertise 100 percent compatibility with previous versions.
Microsoft Shifts from OS/2 to Windows NT
Circa 1991

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Following the success of Windows 3.0, Microsoft saw the writing on the wall and knew it had a future in designing and selling its own OS. in 1991, Microsoft severed its collaborative relationship with IBM and announced it had decided to discontinue development of the OS/2 operating system.
While IBM went on to release OS/2 Version 2, Microsoft took some of the code base and used it to develop Windows NT. Some saw the move as Microsoft's way of "exerting its muscle as the dominant player in deciding the future of the microcomputer market," the first time Microsoft had been in such a position. The move also drew the attention of investors. Following Microsoft's announcement, shares of the company soared $5 to close at $71 for the day.
The divorce was a bitter one for both sides. IBM, perhaps scorned over Microsoft's departure, would tell anyone that would listen that OS/2 was more stable than Windows. In response, Steve Ballmer showed several ways of how it was possible to crash a PC running OS/2.