Chapter XXII: "What NeXT?"
“Microsoft’s breakup really changed the whole computer industry here, but it’s more than recovered since then. Of course, the industry has had its fair share of ups and downs since then, but the computer industry is still very much one of the things that we in Washington do better than anybody else.”
- Senator Lonnie de Soto (D-WA), in an interview concerning the dominance of Washington-based information companies in a 2017 interview. [1]
Microsoft’s woes were not over yet. Already having been forced to stop including Internet Explorer as part of their operating system, greatly reducing their market share, and hurting their attempt to gain a major foothold in internet services. But they had what they thought was one last trick up their sleeve. While they had been ordered to distribute a version of Windows that no longer came with Internet Explorer bundled with it, they had asserted that doing so would cause issues with the Windows operating system. So, they told the computer manufacturers that they had a choice, either use an outdated, unsupported version of Windows, or use a new one that would not work properly.
It did not take long for news of this to reach the Department of Justice. To say that they were not pleased was an understatement. When confronted, Microsoft insisted that it was effectively the fault of the court for forcing Microsoft into such a situation. However, during the trial, Microsoft’s evidence that removing Internet Explorer caused issues with the Windows operating system had been shown to be falsified. [2]
This was only the latest in a series of gaffes for Microsoft related to the trial. During deposition, CEO Bill Gates’ interview had proven meandering, with Gates arguing over the definition of various words. While it avoided incriminating Microsoft, or outright perjury, Gates’ attitude was not a good look for the company. Media coverage had been almost entirely negative towards Microsoft, though they had paid for ads, most notably “An Open Letter to the President On Antitrust Protectionism”.
The DOJ had, quite frankly, had enough of Microsoft. They had lost two anti-trust cases now, and showed no signs that they were going to change their actions. There was, in their eyes, only one solution. Break Microsoft up. [3]
On May 6 1998, the court ordered that Microsoft be split up, with one company holding the rights to the Windows operating system, and the other holding the rights to all of Microsoft’s software, including Internet Explorer. Though Microsoft would appeal this decision, the D.C. Court of Appeals upheld the decision.
Microsoft would not fully be broken up until the end of 1998, but by then both Bill Gates and Steve Ballmer had jumped ship. Microsoft’s successors, Windows Systems (which inherited the Windows operating system) and Microsoft Corp. (which retained the software rights), were left largely rudderless without either of the two men who had built the company up from the beginning. [4]
The Microsoft case had hurt the computer industry considerably, though some did profit. Apple’s stock recovered somewhat, leading them to abandon the deal which would have had them purchase NeXT. However, this rebound was short-lived, and by the time they realised as such, there was not enough time to strike a deal with NeXT. In June 1997, Apple declared bankruptcy. [5]
Much of Apple’s staff moved on to other sectors in the market, with many going on to make a name for themselves elsewhere. Apple’s place in the market was swiftly taken by NeXT, who continued their work on innovating in the market. Steve Jobs was in the limelight once more, and he intended to make sure that the next NeXT computer would not have only a limited release. In the years to come, NeXT would make a name for themselves as the go-to high-end computer company. [6]
With a major player out of the game, and another left in chaos, the market for operating systems was wide open to new competitors. By 2000, the market for OSes was completely different, with some new players having stepped up to the plate.
NeXT Time: "You're Looking Animated",
Doctor Who: The Animated Series's first season.
[1] Yeah, the character's name is a reference. To what, I won't quite say, but she'll be making an appearance in the political timeline around 1995.
[2] The second Microsoft anti-trust trial kicks off two years early, but the story beats are pretty much the same. Gates is very arrogant, and isn't too co-operative.
[3] Very nearly happened in OTL. It got reversed on appeal, but here, it doesn't.
[4] I think these names are plaudible. Anyway, the industry is really shaken up by this.
[5] Again, a company gets arrogant and pays the price. The stock recovery is attributed to their changes in the company, rather than Microsoft being attacked from all sides. The NeXT deal doesn't go through, because a lot of the board still really don't like Jobs, and if they don't need to deal with him, they won't.
[6] There's a couple of former Apple employees that will be making appearances later on, but NeXT certainly won't have the same aesthetic as Apple under Jobs. NeXT is about innovating the market, being the most powerful, rather than being chic.
I've hit a bit of a groove recently, and I'm really enjoying writing these again. I'll probably put an update out on the political timeline before the next one here, and there's a hint as to what might be coming up soon there in this here update.