Windows 3.0 is considered to be the first version of Windows to receive critical acclaim. Users and critics universally lauded its icon-based interface and the ensuing ease of performing operations,
Computerworld considered the software to share the same benefits as OS/2 and Unix. One critical aspect of Windows 3.0 is how it managed memory. Before its release, users of previous versions of Windows were burdened with trying to circumvent memory constraints to use those versions' touted capabilities. The Windows software occupied a large amount of memory, and users regularly experienced system slowdowns and often exceeded memory limits. Windows 3.0 also had relatively high memory requirements by 1990's standards, but with the three memory modes, it was praised for using memory more efficiently, removing the 640–kilobyte limit that had existed in computers running on Microsoft software since DOS, and supporting more powerful CPUs. However, in February 1991,
PC Magazine noted a vast array of applications designed specifically for Windows 3.0, including many that had yet to be available for OS/2. It also cited two other factors leading to the operating environment's success: one of them was the inexpensive cost of the hardware needed to run it compared to the Macintosh, and the other was its focus on fully utilizing hardware components that were relatively powerful by its time's standards. Amid the unprecedented success of Windows 3.0, Microsoft came under attack by critics as well as the United States
Federal Trade Commission, who alleged that the company had attempted to dominate the applications market by luring its competitors into developing software for IBM's OS/2 while it was developing its own for Windows. At the time of Windows 3.0's release, Microsoft had only 10 and 15 percent of the market shares on spreadsheets and word processors, respectively, but those figures had risen to over 60 percent in 1995, overtaking previously dominant competitors such as
Lotus Development Corporation and
WordPerfect. Microsoft did indeed suggest developers to write applications for the OS/2, but it also intended Windows 3.0 to be a "low-end" alternative to the latter, with Gates referring to the OS/2 as the operating system of the 1990s. The Windows brand was also intended to be canceled after this version's release. The investigations into—and the eventual subsequent suing of—Microsoft led to a settlement on July 15, 1994, where Microsoft agreed not to bundle separate software packages with its operating products. It marked the first time that the company had ever been investigated for anticompetitive practices.
Sales Windows 3.0 is also considered the first Windows to see commercial success. After six months, two million copies were sold. Its success was interdependent with the PC industry, exemplified by an explosion of demand for and subsequent production of Intel's more powerful microprocessor, the
80486. Windows became so widely used in businesses that Brian Livingston of
InfoWorld wrote in October 1991 that "a company with no PCs that run Windows is almost like a company without a fax machine." Microsoft had spent a total of $10 million in its marketing campaign for the software, including the $3 million for its release. When its successor, Windows 3.1, was released, sales totaled about 10 million copies, Windows 3.0 is regarded in retrospect as a turning point in the future of Microsoft, being attributed to its later dominance in the operating system market and to the company's improved applications market share. The company used to have close ties with IBM since the former's inception, but the unexpected success of its new product would lead to the two companies recasting their relationship, where they would continue to sell each other's operating products until 1993. After the fiscal year of 1990, Microsoft reported revenues of US$1.18 billion, with $337 million appearing in the fourth quarter. This annual statistic is up from $803.5 million in fiscal 1989, and it made Microsoft the first
microcomputer software company to reach the $1 billion mark in one year. Microsoft officials attributed the results to the sales of Windows 3.0. ==References==