Windows 98

Released on June 28, 1998.

Following the success of Windows 95, the development of Windows 98 began, initially under the development codename Memphis. The first test version, Windows Memphis Developer Release, was released in January 1997.

Memphis first entered beta as Windows Memphis Beta 1, released on June 30, 1997. It was followed by Windows 98 Beta 2, which dropped the Memphis name and was released in July. Microsoft had planned a full release of Windows 98 for the first quarter of 1998, along with a Windows 98 upgrade pack for Windows 95, but it also had a similar upgrade for Windows 3.x operating systems planned for the second quarter. Stacey Breyfogle, a product manager for Microsoft, explained that the later release of the upgrade for Windows 3 was because the upgrade required more testing than that for Windows 95 due to the presence of more compatibility issues, and without user objections, Microsoft merged the two upgrade packs into one and set all of their release dates to the second quarter.

On December 15, Microsoft released Windows 98 Beta 3. It was the first build to be able to upgrade from Windows 3.1x, and introduced new startup and shutdown sounds.

Near its completion, Windows 98 was released as Windows 98 Release Candidate on April 3, 1998, which expired on December 31. This coincided with a notable press demonstration at COMDEX that month. Microsoft CEO Bill Gates was highlighting the operating system's ease of use and enhanced support for Plug and Play (PnP). However, when presentation assistant Chris Capossela plugged a USB scanner in, the operating system crashed, displaying a Blue Screen of Death. Bill Gates remarked after derisive applause and cheering from the audience, "That must be why we're not shipping Windows 98 yet." Video footage of this event became a popular Internet phenomenon.

Microsoft had quietly marketed the operating system as a tune-up to Windows 95. It was compiled as Windows 98 on May 11, 1998, before being fully released to manufacturing on May 15. The company was facing pending legal action for allowing free downloads of, and planning to ship Windows licenses with, Internet Explorer 4.0 in an alleged effort to expand its software monopoly. Microsoft's critics believed the lawsuit would further delay Windows 98's public release; it did not, and the operating system was released in June.

Windows 98 sold 530,000 licenses in its first four days of availability, overtaking Windows 95's 510,000. It later sold a total of 580,000 and 350,000 licenses in the first and second months of availability, respectively. In the first year of its release, Windows 98 sold a total of 15 million licenses – 2 million more than its predecessor.