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Gates was within his rights when he revealed, in November 1983, that Microsoft planned to develop a new operating system for IBM PCs — featuring a graphical interface with windows, icons, and a mouse for point-and-click navigation — called Windows.
Gates believed that graphical interfaces were the future and that Microsoft, ‘hey, we believe in graphics interfaces, we saw the Xerox Alto, too’.”
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At the time, Microsoft was producing an operating system, known as DOS, which it licensed to IBM (IBM, -0.35%) and compatible computers. It was based on an old-fashioned command line interface that confronted users with surly little prompts such as C:>. As Jobs and his team began to work closely with Microsoft, they grew worried that it would copy Macintosh’s graphical user interface and make its own version. Andy Hertzfeld, a member of the original Macintosh team, noticed that his contact at Microsoft was asking too many detailed questions about how the Macintosh operating system worked. “I told Steve that I suspected that Microsoft was going to clone the Mac,” Hertzfeld recalled.
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” Gates recalled. “I went down to Cupertino, like a command performance. I told him, ‘we’re doing Windows.’ I said to him, ‘we’re betting our company on graphics interface’.”