Bill Gates
👤 SpeakerAppearances Over Time
Podcast Appearances
The crazier thing is, even as late as 2001 with Windows XP, they were still riding this tailwind. The US household penetration of personal computers, again, flashing back pre-IPO, was only 8%. So that whole doubling year over year over year... By Microsoft's IPO, they still only got to around 10% of penetrating the U.S. By 1997, 13 years later, it grew to 37%.
The crazier thing is, even as late as 2001 with Windows XP, they were still riding this tailwind. The US household penetration of personal computers, again, flashing back pre-IPO, was only 8%. So that whole doubling year over year over year... By Microsoft's IPO, they still only got to around 10% of penetrating the U.S. By 1997, 13 years later, it grew to 37%.
And after a couple years of XP being in market, 2003, it had grown to 62%. So I think the craziest stat is actually that last one. 2003 feels like a modern moment in history, but PCs were still only in 62% of U.S. homes.
And after a couple years of XP being in market, 2003, it had grown to 62%. So I think the craziest stat is actually that last one. 2003 feels like a modern moment in history, but PCs were still only in 62% of U.S. homes.
The PC wave is just one of the greatest secular trends in history, particularly if you have a monopoly share of that market. Yeah. And they, as defined by the U.S. government, did. Ben, define define for me. I mean, there's just no question of as this market grows, are you going to be able to continue to participate in it? It's like, yeah, we basically are a tracker for that market.
The PC wave is just one of the greatest secular trends in history, particularly if you have a monopoly share of that market. Yeah. And they, as defined by the U.S. government, did. Ben, define define for me. I mean, there's just no question of as this market grows, are you going to be able to continue to participate in it? It's like, yeah, we basically are a tracker for that market.
Maybe, David. Make your case and then let's talk about it.
Maybe, David. Make your case and then let's talk about it.
Well, it's important to know Microsoft didn't start in gaming with the Xbox. Windows 95, they shipped DirectX. That changed the world. They became a real gaming platform. Because of that is this unbelievably clever set of APIs that went entirely around Windows. Amazing piece of technology.
Well, it's important to know Microsoft didn't start in gaming with the Xbox. Windows 95, they shipped DirectX. That changed the world. They became a real gaming platform. Because of that is this unbelievably clever set of APIs that went entirely around Windows. Amazing piece of technology.
You put Microsoft on the map and you have the whole rise in PC gaming for the next six years, even before the Xbox.
You put Microsoft on the map and you have the whole rise in PC gaming for the next six years, even before the Xbox.
And how crazy is this? They thought they were getting broken up. Right, as they're launching a video game console. And this operating system that they've been working toward for like eight years.
And how crazy is this? They thought they were getting broken up. Right, as they're launching a video game console. And this operating system that they've been working toward for like eight years.
Yeah. Okay, while we're in Xbox land, should we finish our Xboxiness right now for this episode? Sure. Xbox has become an important part of our world, but not an important part of Microsoft's business. Agree. David and I sort of heard people utter things in our research like Xbox has kind of been a lifetime breakeven business or it's never meaningfully contributed to Microsoft.
Yeah. Okay, while we're in Xbox land, should we finish our Xboxiness right now for this episode? Sure. Xbox has become an important part of our world, but not an important part of Microsoft's business. Agree. David and I sort of heard people utter things in our research like Xbox has kind of been a lifetime breakeven business or it's never meaningfully contributed to Microsoft.
So I tried to figure out as much as I could from financial statements. And I got to thank Alex at the Science of Hitting, it's a great sub stack, for helping me with this. If you look, there was a division called Entertainment and Devices that was part of their old reporting structure. And if you look at the E&D reporting over time, let's start back in 2006.
So I tried to figure out as much as I could from financial statements. And I got to thank Alex at the Science of Hitting, it's a great sub stack, for helping me with this. If you look, there was a division called Entertainment and Devices that was part of their old reporting structure. And if you look at the E&D reporting over time, let's start back in 2006.