• Microsoft launched its Xbox gaming console nearly 25 years ago.
• The brand has become beloved, owning popular gaming franchises like "Call of Duty" and "Minecraft."
• Read about the Xbox's history, and how it became a staple of the gaming industry.

Since its debut in 2001, Microsoft's Xbox has become a cornerstone in the gaming industry, quickly coming to rival and challenge the market dominance of the Sony PlayStation and Nintendo.

The Xbox brand has evolved through multiple console generations, introducing innovations that have not only influenced competitors but also helped cement Microsoft as a serious player in the entertainment sector.

The development and launch of Xbox

Starting in the late 1990s, Microsoft recognized the growing importance of the gaming industry and the potential of integrating personal computing into a home console.

Microsoft co-founder Bill Gates was intrigued by the idea of entering the console gaming market, but posed a major hurdle in the beginning. It took months to convince a skeptical Gates to agree to fund the Xbox project, Business Insider previously reported.

A team of engineers led by Seamus Blackley had already started work on the project before it was even presented to Gates. They envisioned a console that could leverage Microsoft's expertise in DirectX graphics technology — hence the code name "DirectX Box," which was later shortened to "Xbox."

The original Xbox was unveiled on November 15, 2001, in North America. It was the first gaming console produced by an American company since the Atari Jaguar ceased operations in 1996. With a built-in hard drive and Ethernet port, the Xbox was technologically advanced for its time. It introduced the world to franchises like "Halo: Combat Evolved," which became a flagship series for the brand.

From Xbox 360 to Xbox One

In 2005, Microsoft launched the Xbox 360 aimed at building online gaming. Xbox Live, initially introduced with the original Xbox console, was significantly expanded, allowing players to connect, compete, and share content globally. The console popularized achievements and "Gamerscore," incentivizing gameplay and fostering a competitive environment. It also introduced the concept of downloadable content (DLC) for consoles, changing how games could be monetized and extended post-release.

The Xbox 360 S was released in June 2010. Its slimmer design aimed to address the infamous "red ring of death" overheating problem that plagued the original Xbox 360 consoles.

The Xbox 360 consoles saw the rise of the best-selling video game series "Call Of Duty." The series is published by Activision Blizzard, which Microsoft acquired in 2023 for $68.7 billion. DLCs for "Call of Duty" games typically released earlier on the Xbox than the PlayStation, leading fans who wanted to experience newly released content as soon as possible to adopt the console.

After an 8 year run, Microsoft retired the Xbox 360 lineup in 2013 in favor of the Xbox One, which it marketed as an all-in-one entertainment system not just designed for gamers. Microsoft ceased producing the Xbox 360 in 2016.

Satya Nadella's strategic pivot

The Xbox One generation saw a stronger focus on exclusive titles and services like Xbox Game Pass, a subscription-based model offering a library of games for a flat monthly fee. This service-oriented approach was part of a larger monumental strategic pivot facilitated by current Microsoft CEO Satya Nadella. Under his leadership, the company has prioritized investment in cloud infrastructure, which caused Azure to surpass its Windows business and subscription versions of Microsoft Office to amass some 50 million monthly users by 2015.

In a 2018 E3 appearance, Microsoft introduced the Xbox Adaptive Controller, designed to make gaming more inclusive by making gaming accessible to those with various disabilities such as Cerebral Palsy.

The controller, designed to work with both Windows and Xbox One games, gives players with limited mobility large programmable buttons, a single joystick, and easy mounting options to wheelchairs or the player's legs. It also boasts compatibility with headphones and other accessories, including additional switches and buttons. Time magazine considered the Adaptive Controller among the best inventions of 2018.

Xbox Series X and Series S

The years 2016 and 2017 saw the release of the Xbox One S and Xbox One X, respectively. Both consoles introduced 4K resolution support for games, with the Xbox One X's implementation featuring a 31% graphics performance boost over the original Xbox One.

Building on the success of the Xbox One lineup, Microsoft released the latest two iterations of the console in 2020: the high-end Xbox Series X and the more affordable Xbox Series S. Both systems boasted faster load times, higher frame rates, and support for ray-tracing. With this console generation, Microsoft embraced backwards compatibility, allowing players to play games dating back to the original Xbox console.

Further illustrating Microsoft's heavy investment in cloud technologies, the company expanded the Xbox Game Pass and introduced the Xbox Cloud Gaming beta. Game Pass essentially works as a Netflix-like service for games, allowing players to pay a flat monthly fee to access a large library of games; Xbox Cloud Gaming allows players to play Xbox games on their computers, Smart TVs, or phones — even using a Sony DualShock 4 PlayStation controller if they so choose — through Game Pass' Ultimate tier, entirely removing the need for an Xbox console.

Microsoft layoffs hit Xbox and Activision Blizzard

However, despite its success, Microsoft's Xbox division has had layoffs and has not been immune to overall market forces. A major slowdown in video game sales following the end of the COVID-19 pandemic has resulted in job cuts across the gaming and tech industries.

In early 2024, Microsoft layoffs affected 1,900 workers between Activision, Xbox, and Bethesda Softworks' parent company ZeniMax.

Later that year, some Xbox employees took voluntary severance packages, and a further 650 employees were laid off from the Xbox division itself.

• Microsoft certifications can help demonstrate your skills for jobs like IT or software engineering.
• Microsoft offers a variety of certifications in its products like Azure, Windows, or Microsoft 365.
• Microsoft offers free, self-paced training, and you can pay to take an exam and become certified.

Microsoft certifications are recognized industry-wide, and are a way for professionals to tangibly demonstrate that they have expertise in a given subject area.

Microsoft certifications are geared towards those entering tech-related fields like IT, software development, data science, and more. The certifications focus on a variety of Microsoft products like Azure, Dynamics, Microsoft 365, and more.

Tech jobs — whether it's an IT role at a mid-sized business or a job at Microsoft itself — are known for being highly competitive. Given the prevalence of Microsoft products in the business world, these certifications shouldn't be overlooked as a way to both show your knowledge and demonstrate your proficiency with Microsoft products.

How Microsoft certifications work

If you're interested in a Microsoft certification, you have a few routes you can take to learn the material: you can pay for instructor-led training from Microsoft itself or from a Microsoft-partnered training organization, or you can take free, self-paced training provided by Microsoft.

To actually become certified, you'll need to pay to take an exam. Most of the exams are online proctored exams that you can do from your own home and computer, but you also have the option to schedule your exam at a test center if you wish.

If you're doing the online version, know that you'll be assigned a proctor to monitor you during the exam, and you'll have to submit photos of your ID and the room you're taking the exam in.

With some exceptions, most Microsoft certifications are good for 12 months, after which they must be renewed. The good news is that renewals are free and just require you to pass an online assessment that is shorter than the original exam. The assessments are also un-proctored and open book. But be warned: you have only six months to complete this or you'll have to retake the original exam.

How much do Microsoft certifications cost?

Exam and training costs can vary significantly depending on the Microsoft certification, and depending on where you're located. Instructor-led courses typically cost the most — some courses in the US can total thousands of dollars — but you have the benefit of a human instructor who can answer your questions and offer tips on the material and exam.

If you go the self-paced training route through Microsoft, your only cost is the exam, which typically costs between $99 and $165, depending on the certification and your location.

What are the most valuable Microsoft certifications?

What Microsoft certifications you should get boils down to your personal interests, and what certifications are most in demand and correlate with high-earning jobs. This can fluctuate over time.

With the prevalence of cloud computing these days, Azure-based certifications are in high demand and jobs like network engineer pay quite well. And amid the ongoing AI arms race that has taken the tech world by storm, a certification in machine learning or generative AI solutions could give you a competitive edge in the job market.

Cybersecurity skills are also in high demand, and Microsoft offers a certification for cybersecurity solutions using Microsoft technologies.

Microsoft's website allows you to browse credentials and filter the various Microsoft certifications based on what type of role you're seeking, such as DevOps engineer or database administrator, or what type of product you want to specialize in, like Microsoft Fabric, Windows, Power BI, or Copilot.

Microsoft certifications for beginners

While intermediate and senior certifications generally correlate with the highest annual salaries, the material is complex and advanced, and they're not necessarily the first certifications you should look for if you're new to the IT field, cloud computing, or to Microsoft technology.

Microsoft certifications are categorized into levels, and labeled as beginner, intermediate, or advanced. You can always start with beginner certifications like Microsoft Certified: Azure Fundamentals (also known as AZ-900) that teaches you the fundamentals of Azure.

Even if you don't take the fundamentals exam and are aiming for a higher-level certification, it can still be worth going through the free self-paced training documentation for the fundamentals courses to help bring yourself up to speed. Everyone starts with different knowledge baselines.

• Microsoft has had three CEOs since its founding in 1975.
• Bill Gates, Steve Ballmer, and Satya Nadella have steered the company through its 50-year history.
• Read about the CEOs who oversaw Microsoft's successes, failures, launches, acquisitions, and more.

Satya Nadella has been Microsoft's CEO since February 4, 2014, and its executive chairman since June 2021. He is the company's third CEO since its incorporation in 1975.

Let's break down the company's chief executives and their tenures:

Bill Gates (1975-2000)

The Microsoft Corporation was co-founded in 1975 by Bill Gates and Paul Allen, shortly after the pair dropped out of Harvard University. Gates said he dropped out of Harvard to found Microsoft because he feared missing out on being a pioneer of the personal computing revolution.

As the company's first chief executive, Gates steered the company through its formative years and set forth Microsoft's original mission of "a computer on every desk and in every home." A pivotal moment came in 1980 when Microsoft secured a deal to supply the operating system for IBM's first personal computer. To accomplish this, Microsoft purchased an existing operating system, modified it, and renamed it MS-DOS — short for Microsoft Disk Operating System — which became the foundation for the company's early success.

In 1985, the company launched Windows 1.0, introducing the Graphical User Interface that made computing more accessible to the masses. Subsequent releases like Windows 3.0 in 1990 and the highly successful Windows 95 in 1995 built upon this innovation, with each release solidifying Microsoft's operating system market dominance, which Microsoft enjoys to this day — in part due to the success of these earlier operating systems. Under Gates' leadership, the company also developed the Microsoft Office suite, which became the industry standard for business productivity software.

The company's rapid growth led to its Initial Public Offering (IPO) in 1986, making Gates a billionaire by the age of 31 and, at one point, the world's richest man. Throughout the 1990s, Microsoft's influence expanded globally, but it also faced significant legal challenges. In 1998, the US Department of Justice filed an antitrust lawsuit against Microsoft, accusing the corporate giant of monopolistic practices by bundling Internet Explorer with the Windows operating system. The prolonged legal battle brought scrutiny, but ultimately, the two parties reached a settlement in 2001 that imposed certain restrictions on Microsoft's business practices.

Despite these challenges, Gates continued to drive innovation, investing heavily in research and development. Microsoft expanded into various areas, including enterprise software, internet services, and gaming, laying the groundwork for future ventures like the Xbox. Gates' leadership emphasized not only technological advancement but also strategic business moves that kept Microsoft at the forefront of the industry.

After leading the company for its first 25 years, Gates resigned in 2000 to focus on his philanthropic efforts, founding the Bill and Melinda Gates Foundation that same year. His tenure left a significant mark on the industry, with Microsoft's software becoming integral to personal and professional computing worldwide. Gates continued on as Microsoft's chief software architect until 2006 and as company chairman until 2014, when Satya Nadella took over the role. Gates remained on the board as a technical advisor before stepping down entirely in 2020.

Steve Ballmer (2000-2014)

Steve Ballmer, who joined Microsoft in 1980 as the company's first business manager, played a pivotal role in shaping its early business strategies. Ballmer succeeded Bill Gates as president and CEO of the company after the founder stepped down in 2000. Recognizing the need for agility in a rapidly evolving tech industry, he initiated extensive internal restructuring that favored speed and fewer bureaucratic hurdles.

With Ballmer at the helm, Microsoft faced significant successes, but also its fair share of challenges. In 2001, the company launched the Xbox, marking its entry into the gaming console market. The Xbox and its successors would come to rival and challenge the market dominance of the Sony PlayStation and Nintendo. The success seen by the Xbox and its successors helped cement Microsoft as a serious player in the entertainment sector.

Ballmer's tenure also saw the release of Windows XP, an operating system so successful that it took until 2016 for another iteration of Windows to actually surpass Windows XP in terms of user base. The following year, it was still the third most popular operating system in the world, despite Windows XP's retirement in April 2014.

However, not all initiatives fared so well. The release of Windows Vista in 2007 was met with widespread criticism due to performance issues and compatibility problems, tarnishing the reputation of Microsoft's flagship operating system. Additionally, Microsoft's efforts in the smartphone arena with Windows Mobile struggled to gain traction. Combined with the introduction of the Apple iPhone in 2007 and the rapid advancement of Google's Android platform, this led to Microsoft ceding significant ground in the burgeoning mobile market that it never recovered. Microsoft tried again with the Windows Phone mobile operating system in October 2010 before throwing in the towel in 2017 and prioritizing iOS and Android development in 2018.

In an effort to bolster services, Microsoft acquired Skype, the video calling service, in 2011 for $8.5 billion. The Skype acquisition helped Microsoft gain valuable ground in both consumer and enterprise communication sectors that was not usurped until 2021 when Microsoft voluntarily replaced it in the business context with Microsoft Teams.

Despite the challenges that Microsoft confronted during Ballmer's tenure as CEO, Microsoft experienced significant financial growth under his leadership. By the time Ballmer announced his retirement in 2013 and officially stepped down in February 2014, the company's annual revenue had tripled. This growth reflected the company's product portfolio expansion and its increased global market reach. Ballmer's tenure was marked by his efforts to diversify Microsoft's offerings and navigate the company through a transformative era in the technology industry, contending with fierce competition and headwinds while building on the company's foundations.

Satya Nadella (2014-present)

Following Steve Ballmer's resignation in February 2014, Satya Nadella took on the role of chief executive and chairman of the board.

Under Nadella's leadership, the company has undergone a significant transformation from a traditional software provider to a leader in cloud computing and subscription services. Recognizing the shifting tech landscape, Nadella prioritized investment in cloud infrastructure, expanding Microsoft Azure into one of the world's foremost cloud platforms. In fact, in 2020 Azure surpassed Microsoft's Windows business. This monumental strategic pivot also involved embracing mobile technologies and shifting key products to subscription-based models, exemplified by the launch of Microsoft 365 (formerly Office 365) in June 2011. By 2015, the number of monthly Microsoft 365 users exceeded 50 million.

Nadella's tenure has been marked by several high-profile acquisitions aimed at diversifying Microsoft's portfolio and strengthening its position across various markets. In 2014, Microsoft acquired Mojang, the creator of the immensely popular video game Minecraft, for $2.5 billion. This was followed by the purchase of the professional networking site LinkedIn in 2016 for $26.2 billion and GitHub in 2018, the leading platform for software development collaboration, for $7.6 billion. These acquisitions broadened Microsoft's offerings and integrated valuable communities and services into its ecosystem.

In more recent years, Nadella has steered Microsoft toward becoming a key player in artificial intelligence. The company has invested heavily in AI research and development, most notably through Microsoft's partnership with OpenAI, after overcoming initial skepticism. As of 2024, Microsoft has invested $13 billion into its OpenAI partnership, plans to obtain 1.8 million AI chips by year-end, and invest $100 billion through 2027 in GPUs and expanding its AI data centers.