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During the time where America used typewriters, childhood friends Bill Gates and Paul Allan formed the company, known as originally Micro-Soft. This was short for what this company worked on, software and Microprocessors for the earliest computer out there at the time, the Altair 8800. Link text
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In 1979, the two choose to move the company from its original place in Albuquerque, New Mexico to Washington State, where it remains today. This is where all their software systems are made.
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Before going public, Microsoft was able to make its first products. These products were MS-DOS and the first Windows interface software.
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Microsoft goes out publicly to the world and gets famous to where Gates, at age 31, becomes the world's youngest billionaire for the software he and Allan made in the company.
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The newest Windows interface at the time was released. This being the start of Mircosoft's public interface software.
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Along with Windows 95, Microsoft's own internet browser was released. Internet Explorer was introduced because of the 1900s usage of the internet skyrocketing.
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Due to them using their dominance in software to drive other companies out of business, breaking America's antitrust laws, the Department of Justice and 20 other state generals gave the company its first lawsuit.
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Some point or so after they handled the lawsuit, Microsoft releases their own gaming console software system, Xbox. The system is compatible with many games to play.
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Through some major convincing to the higherups, Microsoft avoided losing too much money and was able to still exist. Though they were given limitations in their work and how they'd advance their software against competitors.
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4 years later, Microsoft released the Xbox 360, an upgraded version of the Xbox before in not just design but in its software system which allowed users to give themselves personal avatars.