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December 1987
Gates partners with IBM to develop a successor to Microsoft's DOS-based operating system and calls it OS/2, touting it as better than Windows. The new OS is manufactured exclusively for use on IBM machines. But when sales of Windows 3.0 took off, Microsoft dropped OS/2 and dissolved the IBM partnership. IBM continued to develop OS/2 on its own, but despite its success in a few niche markets, such as ATMs, it was discontinued in 2001.

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Last updated June 25 2008: 4:03 PM ET
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