Microsoft Flight Simulator began as a set of articles on computer graphics, written by Bruce Artwick throughout 1976, about flight simulation using 3-D graphics. When the editor of the magazine told Artwick that subscribers were interested in purchasing such a program, Artwick founded subLOGIC Corporation to commercialize his ideas. At first the new company sold flight simulators through mail order, but that changed in January 1979 with the release of Flight Simulator (FS) for the Apple II.[1] They soon followed this up with versions for other systems and from there it evolved into a long-running series of computer flight simulators.
Computer-graphics specialist Bruce Artwick and pilot and marketing student Stu Moment were roommates at the University of Illinois. A2FS1 Flight Simulator, their first product after forming subLOGIC,[2] had black and white wireframe graphics, featured a very limited scenery consisting of 36 tiles (in a 6 by 6 pattern, which roughly equals a few hundred square kilometers), and provided a very basic simulation (with only one aircraft simulated). Despite this, it ended up being one of the most popular Apple II applications of the early 1980s.The simulator was later ported to the TRS-80 Model I, which had only rudimentary graphics capability. To squeeze the simulator into the TRS-80 limited memory and display, subLOGIC saw it necessary to drop the instrument panel and reduce the resolution. Flight Simulator for the TRS-80 therefore has the most simplistic graphics of all versions of Flight Simulator (gameplay video in a modern emulator).Flight Simulator sold 30,000 copies by June 1982, tied for third on Computer Gaming World’s list of top sellers.[3] Later subLOGIC released updated versions for both the Apple II and TRS-80 on 51⁄4 inch diskettes. The updates included enhanced terrain, help menus, and a bomb sight.
After the release of subLOGIC’s Microsoft Flight Simulator for the IBM PC, subLOGIC backported its improvements to other computers as Flight Simulator II.[2] This version, like the Microsoft release, did away with wireframe graphics for solid colors, and featured real-world scenery (although limited to a few areas in the United States). It also introduced simulator add-ons, although not in the form it is today, as subLOGIC also included functionality to load additional scenery from floppy disks, thus making it possible for a user to virtually fly in his or her own backyard.InfoWorld in 1984 praised Flight Simulator II for the Apple as “a complicated but exhilarating game … Bruce Artwick has really done it all”, and stated that it was superior to Microsoft’s version.[4] II Computing listed it ninth on the magazine’s list of top Apple II games as of late 1985, based on sales and market-share data,[5] and it was subLogic’s best-selling Commodore game as of late 1987In 1984 Amiga Corporation asked Artwick to port Flight Simulator for its forthcoming computer, but Commodore’s purchase of Amiga temporarily ended the relationship. SubLOGIC instead finished a Macintosh version, released by Microsoft, then resumed work on the Amiga and Atari ST versions.[2]

Although still called Flight Simulator II, the Amiga and Atari ST versions compare favorably with Microsoft Flight Simulator 3.0. Notable features included a windowing system allowing multiple simultaneous 3d views – including exterior views of the aircraft itself – and (on the Amiga and Atari ST) modem play.
Sometime during 1981-82, Microsoft obtained the license to port the simulator to IBM compatibles PCs. This version was released in November 1982 as Microsoft Flight Simulator, and featured an improved graphics engine, variable weather and time of day, and a new coordinate system (used by all subsequent versions up to version 5).

Advertisements claimed “If flying your IBM PC got any more realistic, you’d need a license”, and promised “a full-color, out-the-window flight display”.[8] Early versions of Microsoft Flight Simulator were used as a test for PC compatibility. If a computer could run MSFS 1.0 and Lotus 1-2-3, it was 100% IBM PC-compatible, and if it could not, it was not.[9][10][11][12][13][14][15]

Compatibility difficulty included the unusual use of the x86 assembly DIV command, where a “DIVIDE BY ZERO” command would be issued every time a screen refresh was needed. This technique often required hardware changes to assure compatibility with MSFS 1.0 software.[citation needed]

There was a dogfight mode with the Sopwith Camel and crop-dusting mode included.
In 1984, Microsoft released their version 2 for IBM PCs. This version didn’t differ too much from MSFS1; the graphics were somewhat improved, as well as a more precise simulation in general had been created. The new simulator expanded the scenery coverage to include a model of the entire United States, although the airports were limited to the same areas as in MSFS1. However, compatibility with subLOGIC Scenery Disks was provided, which were released in the following years, gradually covering the whole USA, Hawaii, Japan, and part of Europe.
Microsoft Flight Simulator 3 improved the flight experience by adding additional aircraft and airports to the simulated area found in MSFS2, as well as improved high-res (EGA) graphics, and other features lifted from the Amiga/ST versions.

The three simulated aircraft were the Gates Learjet 25, the Cessna Skylane, and the Sopwith Camel. Flight Simulator 3 also allowed the user to customize the display; multiple windows, each displaying one of several views, could be positioned and sized on the screen. The supported views included the instrument and control panel, a map view, and various external camera angles.

This version included a program to convert the old series of subLOGIC Scenery Disks into scenery files (known as SCN files), which could then be copied to the FS3 directory, allowing the user to expand the FS world.

Version 4 followed in 1989, and brought several improvements over MSFS3. These included amongst others; improved aircraft models, as well as an upgraded model of the Cessna Skylane, programmable dynamic scenery (non-interactive air and ground traffic on and near airports moving along static prerecorded paths). The basic version of FS4 was available for Macintosh computers in 1991. Like FS3, this version included an upgraded converter for the old subLOGIC Scenery Disks into SCN files.

A large series of add-on products were produced for FS4 between 1989 and 1993. First from Microsoft & the Bruce Artwick Organization (BAO) came the Aircraft and Scenery Designer (ASD) integration module. This allowed FS4 users to quite easily build, on the fly from directly within the program, custom scenery units known as SC1 files which could be used within FS4 and traded with other users (this activity was quite popular in the FS Forum on CompuServe). Also, ASD provided the addition of the Aircraft Designer Module. Again, from directly within the program the user could select one of two basic type aircraft frames (prop or jet) and proceed to parameter customizations ranging over 4 pages of flight envelope details and visual aspects. Finally, ASD provided additional aircraft including a B747 with a custom dash/cockpit (which required running in 640 × 350 resolution).

Next from Mallard Software and BAO came the sound, graphics, and aircraft Upgrade (SGA). This added digital and synth sound capability to FS4 (which used to be only via PC speaker.) Second a variety of high resolution modes became available for specific types of higher end video cards and chipsets, thus supplying running resolutions up to 800 × 600. As with ASD, the SGA upgrade also came with some additional aircraft designed by BAO, including an Ultra-light.

The final addition was known as the Aircraft Adventure Factory (AAF). AAF consisted of two primary components. First, the Aircraft Factory which was a Windows-based program allowing custom design aircraft shapes to be used within FS4 utilizing a unique, rather easy to use CAD type interface, supported by various sub menu and listing options. Once the shape was created and colors assigned to the various pieces, it could be tied to an existing saved flight model as was designed in the Aircraft Designer module. The end result was a two file unit, creating a new custom aircraft for FS4. Thousands of aircraft were designed by users using this utility and like scenery files, found their way onto the FS Forum at CompuServe (the Mecca for FS4). The Aircraft designed was an independent utility in terms of the flight simulator, and one didn’t need to have it installed in order to use the aircraft files.

The other component of AAF was the Adventure module. Using a simple language (much similar to QBASIC), a user could design and compile a script that could be run from within FS4. Many FS4 parameters could be accessed including such things as aircraft position, airspeed, altitude, aircraft flight characteristics, etc. These could then be used to do things like display messages on the screen, play VOC audio files, and even display 256 color VGA images. The end result was that users could create fun adventures to use and share. The Adventure interface is integrated within an upgraded version of the sound driver from the previous SGA upgrade, and thus this driver is needed in order to play adventures. The adventure compiler itself is, however, a separate program. Two other minor utility drivers came shipped with the AAF, one that replaced the transponder digits with the actual framerate, and one that provided correct magnetic deviation within the US scenery map.

Other Add-On products (most published by Mallard Software) included: The Scenery Enhancement Edition (SEE4) which further enhanced SC1 files and allowed for AF objects to be used as static objects within SEE4. Pilots Power Tools (PPT) which greatly eased the management of the many aircraft and scenery files available. Finally, a variety of new primary scenery areas created by MicroScene, including Hawaii (MS-1), Tahiti (MS-2), Grand Canyon (MS-3), and Japan (MS-4). Scenery files produced by subLOGIC could also be used with FS4, including subLOGIC’s final massive USA East and West scenery collections.

With its many options and add-ons, yet still relatively tight “in program” integration and overall ease of use, the FS4 suite of programs presented a type of VR Toolkit for users with a flight simulator slant. While complex in some aspects, FS4 environment building options (including scenery and aircraft design) would provide an unsurpassed access to these activities for average users; an option, which in later versions of FS, was much less available and increasingly complex.

The company’s Client division produces the flagship Windows OS line such as Windows 8; it also produces the Windows Live family of products and services. Server and Tools produces the server versions of Windows, such as Windows Server 2008 R2 as well as a set of development tools called Microsoft Visual Studio, Microsoft Silverlight, a web application framework, and System Center Configuration Manager, a collection of tools providing remote-control abilities, patch management, software distribution and a hardware/software inventory. Other server products include: Microsoft SQL Server, a relational database management system, Microsoft Exchange Server, for certain business-oriented e-mail and scheduling features, Small Business Server, for messaging and other small business-oriented features; and Microsoft BizTalk Server, for business process management.

Microsoft provides IT consulting (“Microsoft Consulting Services”) and produces a set of certification programs handled by the Server and Tools division designed to recognize individuals who have a minimal set of proficiencies in a specific role; this includes developers (“Microsoft Certified Solution Developer”), system/network analysts (“Microsoft Certified Systems Engineer”), trainers (“Microsoft Certified Trainers”) and administrators (“Microsoft Certified Systems Administrator” and “Microsoft Certified Database Administrator”). Microsoft Press, which publishes books, is also managed by the division. The Online Services Business division handles the online service MSN and the search engine Bing.
The Microsoft Business Division produces Microsoft Office including Microsoft Office 2010, the company’s line of office software. The software product includes Word (a word processor), Access (a relational database program), Excel (a spreadsheet program), Outlook (Groupware, frequently used with Exchange Server), PowerPoint (presentation software), Publisher (desktop publishing software) and Sharepoint. A number of other products were added later with the release of Office 2003 including Visio, Project, MapPoint, InfoPath and OneNote. The division also develops enterprise resource planning (ERP) software for companies under the Microsoft Dynamics brand. These include: Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, and Microsoft Dynamics SL. They are targeted at varying company types and countries, and limited to organizations with under 7,500 employees.[98] Also included under the Dynamics brand is the customer relationship management software Microsoft Dynamics CRM, part of the Azure Services Platform.
The Entertainment and Devices Division produces the Windows CE OS for embedded systems and Windows Phone for smartphones.[99] Microsoft initially entered the mobile market through Windows CE for handheld devices, eventually developing into the Windows Mobile OS and now, Windows Phone. Windows CE is designed for devices where the OS may not directly be visible to the end user, in particular, appliances and cars. The division also produces computer games, via its in-house game publisher Microsoft Studios, that run on Windows PCs and other systems including titles such as Age of Empires, Halo and the Microsoft Flight Simulator series, and houses the Macintosh Business Unit which produces macOS software including Microsoft Office 2011 for Mac. Microsoft’s Entertainment and Devices Division designs, markets, and manufactures consumer electronics including the Xbox 360 game console, the handheld Zune media player, and the television-based Internet appliance MSN TV. Microsoft also markets personal computer hardware including mice, keyboards, and various game controllers such as joysticks and gamepads.
he company is run by a board of directors made up of mostly company outsiders, as is customary for publicly traded companies. Members of the board of directors as of January 2016 are John W. Thompson, Bill Gates, Teri L. List-Stoll, Mason Morfit, Satya Nadella, Charles Noski, Helmut Panke, Sandi Peterson, Charles W. Scharf, John W. Stanton, and Padmasree Warrior.[100] Board members are elected every year at the annual shareholders’ meeting using a majority vote system. There are five committees within the board which oversee more specific matters. These committees include the Audit Committee, which handles accounting issues with the company including auditing and reporting; the Compensation Committee, which approves compensation for the CEO and other employees of the company; the Finance Committee, which handles financial matters such as proposing mergers and acquisitions; the Governance and Nominating Committee, which handles various corporate matters including nomination of the board; and the Antitrust Compliance Committee, which attempts to prevent company practices from violating antitrust laws.
When Microsoft went public and launched its initial public offering (IPO) in 1986, the opening stock price was $21; after the trading day, the price closed at $27.75. As of July 2010, with the company’s nine stock splits, any IPO shares would be multiplied by 288; if one was to buy the IPO today given the splits and other factors, it would cost about 9 cents.[17]:235–236[103][104] The stock price peaked in 1999 at around $119 ($60.928 adjusting for splits).[105] The company began to offer a dividend on January 16, 2003, starting at eight cents per share for the fiscal year followed by a dividend of sixteen cents per share the subsequent year, switching from yearly to quarterly dividends in 2005 with eight cents a share per quarter and a special one-time payout of three dollars per share for the second quarter of the fiscal year.[105][106] Though the company had subsequent increases in dividend payouts, the price of Microsoft’s stock remained steady for years.[106][107]

Standard and Poor’s and Moody’s have both given a AAA rating to Microsoft, whose assets were valued at $41 billion as compared to only $8.5 billion in unsecured debt. Consequently, in February 2011 Microsoft released a corporate bond amounting to $2.25 billion with relatively low borrowing rates compared to government bonds.[108] For the first time in 20 years Apple Inc. surpassed Microsoft in Q1 2011 quarterly profits and revenues due to a slowdown in PC sales and continuing huge losses in Microsoft’s Online Services Division (which contains its search engine Bing). Microsoft profits were $5.2 billion, while Apple Inc. profits were $6 billion, on revenues of $14.5 billion and $24.7 billion respectively.[109] Microsoft’s Online Services Division has been continuously loss-making since 2006 and in Q1 2011 it lost $726 million. This follows a loss of $2.5 billion for the year 2010.[110]

On July 20, 2012, Microsoft posted its first quarterly loss ever, despite earning record revenues for the quarter and fiscal year, with a net loss of $492 million due to a writedown related to the advertising company aQuantive, which had been acquired for $6.2 billion back in 2007.[111] As of January 2014, Microsoft’s market capitalization stood at $314B,[112] making it the 8th largest company in the world by market capitalization.[113] On November 14, 2014, Microsoft overtook Exxon Mobil to become the 2nd most valuable company by market capitalization, behind only Apple Inc. Its total market value was over $410B — with the stock price hitting $50.04 a share, the highest since early 2000.[114] In 2015, Reuters reported that Microsoft Corp had earnings abroad of $76.4 billion which were untaxed by the IRS. Under U.S. law corporations don’t pay income tax on overseas profits until the profits are brought into the United States.