Unlike software, where it’s comparatively much easier to succeed with products, hardware transcends digital constraints. It involves the complexities of manufacturing, supply chain, and physical design, which takes incredibly high effort to get right in the first go. Naturally, firms falter a lot with the initial products and gadgets, but Microsoft had a surprisingly good run.
Software firms try to transition to hardware, and it usually doesn’t go well, and Microsoft’s situation was no different. Perhaps it was due to the state of hardware back in the years, or due to the existing hardware competition? It’s debatable. While Microsoft could be struggling to put out good hardware now, it once made gadgets that redefined or refined categories and made them memorable. Here are some of the most iconic Microsoft gadgets from every decade in the past 50 years.
1. Microsoft’s “Original” Mouse
Release Date : May 1983
Image Credit: Microsoft
Microsoft entered into making hardware before it made Windows. Now, as surprising as it sounds, the Microsoft Mouse was released in 1983 in contact with the Alps Electric. It came with Microsoft Word , Notepad, a game, and a piano program for consumers to practice how to use the mouse. Microsoft’s sudden entry into the hardware market and that too starting with a mouse was all thanks to Apple’s Mouse for Lisa computer which also released in 1983.
Besides, there were other competitors, like the Logitech P4. The Microsoft Mouse was pretty simple, with two green buttons at the area where your fingers would usually sit. That’s also how it got its name among the consumers, the “Green-eyed mouse”. It costed a whopping $195 which was almost a $100 less than the P4.
There was also a very subtle old Microsoft logo on the left side of the body, which looked extremely minimalistic. Initially, it came with an ancient DB-25 serial port, which was used by the IBM PC and even Apple’s original Macintosh and Apple II. However, Microsoft was still a new kid on the block and the Microsoft mouse was released before Windows. In the end, the firm could initially only sell 5,000 units despite manufacturing around 100,000 units.
You can still download the original manual of the Microsoft Mouse to this day from the official Microsoft website . The design of the Microsoft Mouse was short-lived. It was replaced by Mouse 2.0 in the same year alongside a variant with a PS/2 connector. Then came the IntelliMouse in 1996 and IntelliMouse Explorer in 1999. They were the last of Microsoft’s last OG mice before the start of the 21st century.
2. SideWinder Controller
Release Date : October 1995
Image Credit: Poshmark
Released in 1995, SideWinder Controller was Microsoft’s first attempt at creating a Game pad for PCs. Its release was around the same time as Windows 95 , when games like DOOM, Diablo, and Sim City came out. The SideWinder had a Game Port, but Microsoft did have an early USB prototype model that it unfortunately never released. The best part about the USB prototype was that it was transparent (Hello, Nothing).
Visually, it was pretty laid back for a controller, especially when you compare it with modern game pads. Perhaps it was a generation thing, but it did get many things right functionality-wise. The six buttons on the right alongside a D-pad on the left. There were two triggers at the back. Microsoft wanted to fit more buttons into the SideWinder but couldn’t due to Game Port’s bandwidth constraints.
Besides the lack of joysticks and the presence of two extra buttons beside the ABXY, you could see the current Xbox layout is still pretty similar to the old SideWinder. It’s worth noting that the game pad is not the only gaming accessory that the giant launched. The SideWinder was a peripheral brand which included Joysticks, Game pads, and even Steering Wheels. We could talk about them, but this section would never end.
As for SideWinder’s popularity, Microsoft pushed it hard, and it was arguably one of the best GamePort game pads for Windows 95/98. However, users complained the D-pad was below average. The competition from Gravis GamePad, Logitech WingMan, and the Thrustmaster Firestorm Digital was there; however, it quickly became a case of “more choices, all the wrong ones” thanks to the limitations of GamePort.
3. The Original Xbox
Release Date : November 2001
It’s the early 2000s and Microsoft had a new possible market to look forward to, i.e., gaming. Having missed out on creating an early PlayStation rival by not taking the market seriously, Microsoft released the Xbox a year after Sony came up with the PlayStation 2 .
The delay was due to the lack of interest; Microsoft was betting big on DirectX and Windows as the future of gaming, which it definitely was. However, but in the process failed to capitalize on another market that would later turn out to be worth billions.
The PlayStation 2 came straight toward Microsoft’s PC gaming glam, and that’s when the giant realized it was time for a console. The original Xbox came out in 2001 with titles like Halo : Combat Evolved. It was a game-changer and single-handedly raised popularity. The console ran a heavily modified version of Windows, which allowed Microsoft to really kick things off superfast.
With hardware being the only piece of the puzzle left, Microsoft’s Intel partnership helped delivered a 733MHz Pentium III processor, 64 MB RAM, a built-in hard drive, and a 233MHz NVIDIA GeForce 3 chip. Besides, Xbox Live was way ahead of its time.
It offered voice chats, the ability to add friends, and easier online multiplayers. All in all, Microsoft really showed its software prowess with the Xbox, while Sony was considerably behind in terms of both hardware and software.
However, despite the console being a great competitor, Xbox was still not as huge of a success compared to the PS2. This was because most of the popular games were still available for only PlayStation. Besides, while the PlayStation 2 came at the same price as the Xbox, i.e., $299 . The Xbox was bulkier, lacked game support, and received criticism for its heft and controllers.
So, while it was pretty successful, selling around 24 million units , it was no match for PlayStation 2’s record sales number of 155 million units. It was a great first try, though, and gave users something to look forward to for the future. Well, we all know how the future console events unfolded for Microsoft, and the less we talk about it, the better. However, the OG Xbox will forever remain in the hearts of gamers, especially American console gamers.
4. Zune
Release Date : November 2006
The iPod came out in 2001 and it sold in incredibly huge numbers. Of course, everyone else wanted a piece of that market, so firms came out with their own media players. That’s when the true iPod competitor came out in the form of Zune, manufactured by the biggest technology firms (then), Microsoft.
Released in 2006, the Zune 30 was the first original Zune. The biggest advantages of the Zune, right off the bat, was it’s bigger screen. It could play videos and the experience was nicer than the then released iPods Video. The UI was much sleeker and the home page was reminiscent of Windows phone’s settings page. There was Zune-to-Zune sharing , which allowed users to share songs wirelessly in 2006! ( Hello AirDrop ).
Microsoft would then release the Zune 80, 120, and 4, 8, 16 with sleeker designs, but by far the best and the most modern Zune was the Zune HD. With an OLED touchscreen and a Windows phone-inspired UI, it was way ahead of the time. Unfortunately, Zune’s reign was short-lived, as Microsoft pulled the plug in 2011.
Notable Mentions : Windows Phone and Surface Lineup
The Surface brand’s emergence was thanks to Windows 8’s radical design shift from the conventional desktop UI. Its first device was the Surface RT and it ran Windows RT 8 (RT was for ARM devices). It had a Tegra 3 SOC, 2 GB of RAM and 64 GB of storage. Microsoft marketed the Surface RT as a hardcore Windows device but the ARM architecture meant not all apps were supported.
If I had a time machine, I would go back to the early 2010s to experience Nokia Lumia all over again. Lumia phones were initially made in partnership with the legendary phone maker Nokia and ran Windows. In an era of countless Android and expensive Apple smartphones, Lumia did everything different thanks to the newly released Metro UI. It was bold, had lots of character while being minimal. and was way ahead of its time.
On the occasion of Microsoft turning 50, we delved about the Lumia era in detail where my colleague Anshuman couldn’t stop wishing for the brand’s comeback . The most talked about device in the Lumia series has to be the Lumia 1020 featuring a whopping 41 MP camera. Even now, my hands itch from time to time to get a taste of what made it such a good phone, as my search for a good 1020 unit in the used market continues.
5. HoloLens
Release Date : March 2016
Just when we thought Microsoft was done making gadgets, it came up with HoloLens, a Mixed Reality headset to blend physical and digital worlds. It was the first Microsoft product that was one of its kind in a period where VR headsets were popping up. Although, there was some competition, the real reason Microsoft went straight into MR was due to the anticipation of Apple entering the space soon. Well, Apple did enter the space but much later.
Microsoft’s original intentions were to make HoloLens a consumer products. Its initial marketing involved showing people holograms in living rooms , playing Minecraft, and productivity features. But the hype fell apart due to the $3000 price tag , lack of apps, clunky design, and an extremely limited FoV. Amidst the interest from a handful of early adopters, the Redmond giant saw huge interest from Healthcare, Manufacturing, and Defense. So it transitioned HoloLens for industrial purposes.
Microsoft did come up with HoloLens 2 in 2019 and while it solved many complaints users had with the first generation, it was still expensive and lacked the app support. Therefore, it naturally failed to capture a broader consumer market. There were reports of conflict about the HoloLens 3, which led to Microsoft eventually killing HoloLens in 2024.
These gadgets will remain some of the best Microsoft hardware, with some of them being way ahead of their time. As for me, I’ll carry the burden of not trying out a Zune and Lumia when they launched. Sure they didn’t take off, but I’m sure the innovation and ideas they brought forward acted as an inspiration to a lot of modern hardware.
Abubakar covers Tech at Beebom, with his passion for technology tracing back to 2011 when he received a Dell Inspiron 5100 as a gift. He’s also a passionate advocate for the right-to-repair movement, believing in empowering users to maintain and extend the life of their devices. Outside the tech world, he enjoys watching anime and exploring his newfound enthusiasm for Japanese cars. In his free time, you’ll often find him immersed in Genshin Impact or researching his next gadget purchase. Before joining Beebom, he contributed to leading publications like Android Police, How-To Geek, and Fossbytes.
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Microsoft is celebrating its 50th anniversary at a time when technology is about to reshape the world. Founded by Bill Gates and Paul Allen in a small rented office in Albuquerque, Microsoft is now the world’s second most valuable company. Over the past 50 years, the software giant has faced many challenges, antitrust lawsuits, and fierce competition, but can it stay ahead in the next five decades? To understand what the next 50 years hold for Microsoft, read on.
What Microsoft’s History Tells Us About the Next 50 Years
Microsoft started as a small company in 1975, developing software for the Altair 8800 — an early personal computer. By 1980, Microsoft needed an operating system to power the IBM PC. So, it acquired 86-DOS and modified it to MS-DOS. MS-DOS became massively popular and by 1985, Microsoft launched its first graphical operating system called Windows 1.0.
Paul Allen and Bill Gates in 1981 | Image Credit: Microsoft
10 years later, in 1995, Microsoft released Windows 95 which was a huge commercial success. For the first time, Microsoft introduced the Start menu, Taskbar, and Windows Explorer. They are still part of the latest Windows 11 OS, even after 30 years.
Following that, Microsoft launched Windows XP, Xbox, and the Office suite, which expanded its footprint in the PC space. Now, 50 years later, Windows has a desktop market share of over 70% , maintaining its position as the dominant OS. In these last 50 years, Microsoft has diversified its business to cloud computing (Azure), gaming (Xbox), productivity (Microsoft 365), and its next big thing – Copilot AI.
Beyond being a consumer-centric company, Microsoft has become a massive corporation that provides its services to enterprise customers as well. In fact, today, Microsoft’s revenue mostly comes from Azure’s cloud infrastructure and AI services. Meanwhile, the remaining revenue comes from Microsoft 365, Windows, and Xbox.
The only major space where Microsoft doesn’t have a footprint is mobile. Windows Phone exited the smartphone OS market in 2020. Bill Gates recently admitted that losing the phone market to Android was his “greatest mistake”. Besides that, Microsoft in 2025 announced that it’s quitting the HoloLens hardware business completely, ending its Mixed Reality vision.
Microsoft’s Role in AGI Development
When Satya Nadella took over Microsoft as the CEO in 2014, the Redmond giant was not in good shape. Nadella ended several struggling projects like the Windows Phone. And focused on its server businesses like Azure cloud, AI, enterprise solutions, and developer relations. As a result, Microsoft has become the world’s second most valuable company by market cap, joining the $3 trillion club in market valuation recently.
The credit largely goes to Satya Nadella for transforming Microsoft in the last decade. Many credit Nadella’s leadership for striking a deal with OpenAI back in 2019. Microsoft invested $1 billion in OpenAI to support the development of AGI (Artificial General Intelligence) — an AI system capable of matching human capabilities.
Image Credit: OpenAI via YouTube
So far, Microsoft has invested close to $14 billion in OpenAI and has a 49% ownership stake in the company. This has put Microsoft at the forefront of AI development. The partnership allows Microsoft to exclusively access OpenAI’s latest breakthroughs and AI models. It can also commercialize OpenAI’s models. Thus, allowing the company to integrate the latest AI models into its products. Like Copilot, Microsoft 365, and Azure AI for enterprise offerings.
Not only that, the terms of the partnership say that OpenAI must use Microsoft Azure for all cloud infrastructure needs. Only recently, Microsoft relented and allowed OpenAI to purchase cloud resources from Oracle. Some reports also say that OpenAI has to share 75% of its revenue with Microsoft until the investment is recovered.
Image Credit: Beebom
It means that Microsoft has a huge financial influence over OpenAI’s operations. And in the future, Microsoft will gradually recover its investment while having access to the latest AI technologies. Having said that, the partnership also says that once OpenAI achieves AGI internally, Microsoft will lose access to OpenAI’s technologies.
To keep its lead in the AI race, Microsoft is putting its AI division in order. Microsoft is reportedly developing internal reasoning models to reduce its over-reliance on OpenAI. The company has already trained smaller models such as Phi for everyday use and Muse AI for generating gaming visuals.
Microsoft is also focusing on open-source models including China’s DeepSeek which shocked the world with its efficient training methods. Overall, Microsoft is currently a key player in AI development, leveraging its partnership with OpenAI and developing in-house AI models as well. Until AGI is achieved, expect Microsoft to continue its lead in the AI race.
Microsoft’s Next 50 Years: Future of Windows
While Windows doesn’t directly contribute major revenue for Microsoft through licensing, the platform serves as the foundational bedrock, powering its software, cloud, and enterprise services. On the consumer side, Windows 11 is the latest desktop OS by Microsoft, and it’s evolving into a great operating system. Microsoft is slowly but gradually improving the design language of Windows 11 to offer a consistent PC experience.
Image Credit: Microsoft
Microsoft is putting effort into making Windows 11 a more modular OS . We have already seen that Windows 11’s various elements such as the desktop shell, Taskbar, Notification Center, etc. are being decoupled from explorer.exe to make each component modular and updatable. Microsoft has already showcased Windows 10X (now canceled) which was based on a highly-modular Windows Core OS .
In the future, we might see different flavors of Windows running on various form factors such as foldable devices, tablets, and more. It’s being said that Windows 12 should come with a floating Taskbar and a new modular desktop interface, optimized for touchscreen devices.
Apart from UI/UX improvements, Microsoft is also adding a lot of AI features to Windows 11. Besides current AI features on Windows 11 such as Recall, Semantic Search, Cocreator, etc., the future of Windows lies in Agentic AI -driven integration. Copilot on Windows will be able to perform actions in real-time using the vision capability. Users will be able to voice chat with Copilot and ask it to perform actions on their Windows PCs.
To enable this, Microsoft is already preparing agentic frameworks for Windows like OmniParser, Magentic-One, AutoGen, and Windows Agent Arena to handle complex tasks. While some companies are bringing AI agents to the web browser, Microsoft is taking it to the OS level so that it can perform both system-level and web-based actions . Basically, in the future, you can expect that Windows will become an AI-driven operating system.
To leverage AI for gaming, Microsoft has already showcased its Muse AI model that can generate game visuals and controller actions. It’s quite possible that Generative AI will be tightly integrated into Xbox to enable features such as AI-assisted gameplay, environment generation, personalized experiences, and more.
Microsoft’s In-house Chips and Quantum Computing
Besides software, on the hardware side too, Microsoft is preparing for the future and reducing its reliance on Nvidia . In 2023, Microsoft announced its custom Azure Maia 100 chip for AI workloads. While Google has its own TPU for AI workloads, and Nvidia continues to sell GPUs for AI training and inference, Microsoft needed an in-house chip , hence, Maia 100 was born. It’s an AI accelerator that can run large-scale AI workloads on Azure’s cloud.
The company also announced an Arm-based Azure Cobalt CPU for general-purpose compute workloads, just like Google’s Axion CPU. Since Microsoft has a major cloud business, the chip is going to reduce datacenter costs for Microsoft and cut down dependency on external vendors like Nvidia and Intel.
Majorana 1 | Image Credit: Microsoft
Finally, in February 2025, Microsoft announced its first breakthrough in quantum computing . The company unveiled Majorana 1, a quantum computing chip for quantum computers. Unlike traditional qubits, Majorana 1 uses topological qubits which are said to be more stable and less prone to errors.
For this, Microsoft invented a new class of materials called “topoconductors”. Microsoft claims that Majorana 1 can scale up to 1 million qubits on a single chip. Overall, Microsoft is doing pioneering work in the field of quantum computing while also developing in-house chips to reduce reliance on external vendors.
And as a software-first company, Microsoft is entering the AI era with high expectations, which has the potential to transform its entire ecosystem including Windows, Xbox, Azure, and Microsoft 365. In the next 50 years, we expect Microsoft to lead the industry with fresh innovations, but can it outpace Google and Apple? Only time will tell.
Passionate about Windows, ChromeOS, Android, security and privacy issues. Have a penchant to solve everyday computing problems.
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