Windows
Microsoft launched its first retail version of Microsoft Windows on November 20, 1985, and in August, the company struck a deal withIBM to develop a separate operating system called OS/2. Although the two companies successfully developed the first version of the new system, mounting creative differences caused the partnership to deteriorate. It ended in 1991, when Gates led Microsoft to develop a version of OS/2 independently from IBM.[42]
Management style
From Microsoft's founding in 1975 until 2006, Gates had primary responsibility for the company's product strategy. He aggressively broadened the company's range of products, and wherever Microsoft achieved a dominant position he vigorously defended it. He gained a reputation for being distant to others; as early as 1981 an industry executive complained in public that "Gates is notorious for not being reachable by phone and for not returning phone calls."[43]
As an executive, Gates met regularly with Microsoft's senior managers and program managers. Firsthand accounts of these meetings describe him as verbally combative, berating managers for perceived holes in their business strategies or proposals that placed the company's long-term interests at risk.[44][45] He often interrupted presentations with such comments as, "That's the stupidest thing I've ever heard!"[46] and, "Why don't you just give up your options and join the Peace Corps?"[47] The target of his outburst then had to defend the proposal in detail until, hopefully, Gates was fully convinced.[46] When subordinates appeared to be procrastinating, he was known to remark sarcastically, "I'll do it over the weekend."[48][49][50]
Gates's role at Microsoft for most of its history was primarily a management and executive role. However, he was an active software developer in the early years, particularly on the company's programming language products. He has not officially been on a development team since working on the TRS-80 Model 100,[51] but wrote code as late as 1989 that shipped in the company's products.[49] On June 15, 2006, Gates announced that he would transition out of his day-to-day role over the next two years to dedicate more time to philanthropy. He divided his responsibilities between two successors, placing Ray Ozzie in charge of day-to-day management and Craig Mundie in charge of long-term product strategy.[52]
Antitrust litigation
Further information: United States Microsoft antitrust case and European Union Microsoft competition case
Many decisions that led to antitrust litigation over Microsoft's business practices have had Gates's approval. In the 1998 United States v. Microsoft case, Gates gave deposition testimony that several journalists characterized as evasive. He argued with examiner David Boies over the contextual meaning of words such as, "compete", "concerned", and "we".[53]BusinessWeek reported:
Early rounds of his deposition show him offering obfuscatory answers and saying 'I don't recall,' so many times that even the presiding judge had to chuckle. Worse, many of the technology chief's denials and pleas of ignorance were directly refuted by prosecutors with snippets of e-mail that Gates both sent and received.[54]
Gates later said he had simply resisted attempts by Boies to mischaracterize his words and actions. As to his demeanor during the deposition, he said, "Did I fence with Boies? ... I plead guilty. Whatever that penalty is should be levied against me: rudeness to Boies in the first degree."[55] Despite Gates's denials, the judge ruled that Microsoft had committedmonopolization and tying, and blocking competition, both in violation of the Sherman Antitrust Act.[55]
