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MSFT 18 / 2002 FORM 10-K
Part I
Item 1
Other Servers. Small Business Server is the flexible network solution designed to help businesses with up to 50 computers. Systems Management Server
helps centrally manage the distributed environment with integrated features, including hardware inventory, software inventory and metering, software
distribution and installation, and remote troubleshooting tools.
Developer Tools and Services. Software development tools and computer languages allow software developers to write programs in a particular
computer language and translate programs into a binary machine-readable set of commands that activate and instruct various hardware devices. The
Company develops and markets a number of software development environments and language compilers. In February 2002, Microsoft launched Visual
Studio .NET, a comprehensive tool for rapidly building and deploying XML Web services and applications. Visual Studio .NET provides software developers
with powerful tools to rapidly design broad-reach Web applications for any device and any platform, and to build powerful Windows applications. Microsoft
Visual C++ is the Company’s development system for Windows-based application development. Microsoft Visual C# offers beginning and intermediate
developers with C++ or Java experience a modern language and robust development environment for creating XML Web services and Microsoft .NET-based
applications for Windows and the Web. The Microsoft Visual Basic development system provides easy access to a wide variety of data sources by integrating
the Microsoft Access database engine and the ability to take advantage of investments in commercial applications. The Microsoft Visual InterDev
development system includes integrated, team-based development tools for building Web-based applications based on HTML, Script, and components
written in any language. Developers can subscribe to the Microsoft Developer Network (MSDN) information service and receive periodic updates via CD-
ROMs, magazines, and several online information services. In addition, Microsoft receives certification fees through the Microsoft Certified Professional
(MCP) program, a program that provides credentials for those who have demonstrated in-depth knowledge of at least one Microsoft product.
Enterprise Services. Microsoft Enterprise Services assist organizations with every stage of technology planning, building, deployment, and support.
Specializing in IT solutions for the enterprise, Microsoft offers a full range of consulting services for advance technology requirements, including custom
solutions services, enterprise application planning, architecture and design services, and proof-of-concept services. The Company provides product support
services aligned to customer segments, partner segments, and communities.
CONSUMER SOFTWARE, SERVICES, AND DEVICES
Consumer Software, Services, and Devices includes Xbox video game system, MSN Internet Access, MSN Network Services, PC and Online Games,
Learning and Productivity Software, Mobility, and Embedded Systems.
Xbox. Microsoft Xbox, released in fiscal 2002, is Microsoft’s next-generation video game console system that delivers high quality graphics and audio
gameplay experiences. For information on Xbox manufacturing, see “Manufacturing” below. Games for the Xbox are developed by Microsoft Game Studios,
such as Halo and Project Gotham Racing, and by third-party game development partners, such as Tecmo’s Dead or Alive 3. Xbox Live, an online service
available to owners of Xbox systems, is expected to be launched in the second quarter of fiscal 2003 and will allow online game play among users of online-
enabled Xbox games.
MSN Internet Access. MSN Internet access is Microsoft’s service for accessing the Web and experiencing a wide range of rich online services and
content. MSN Internet access subscribers can access their account from multiple sources, including a computer, television, Internet appliances, and Personal
Data Assistants.
MSN Network Services. The MSN network provides services, content and advertising on the Internet, encompassing MSN Search, Messenger, eShop,
Hotmail, Money, and Music, as well as other services and content. MSN Search makes Web searches more useful by providing users with the most relevant
results for the most popular search queries on the Web. MSN Messenger is a free Internet messaging service that enables users to see when others are
online and exchange instant messages with them. MSN eShop is a one-stop online shopping resource. MSN Hotmail is the world’s leading free Web-based
e-mail service. MSN Money is a complete online personal financial service that combines finance tools and content from Microsoft with exclusive investment
news and analysis from CNBC. MSN Music provides consumers with one place online to find old favorites, as well as discover new music, and delivers a
high quality listening experience.
PC and Online Games. The Company offers a line of entertainment products from classic software games to online games, simulations, sport products,
and strategy games. Microsoft Flight Simulator is a popular aircraft flight simulation product. Other games include Age of Empires, Dungeon Siege,
MechWarrior, Microsoft Links, Train Simulator, Zoo Tycoon, and other action and sports titles. Zone.com is a gaming community on the Internet allowing
multiplayer gaming competitions of Microsoft’s popular CD-ROM games and classic card, board, and puzzle games.
Learning and Productivity Software. Learning titles include Microsoft Encarta Reference Library, a complete research and reference source with a
multimedia encyclopedia database with interactive information, an interactive world atlas with three-dimensional maps, a world English dictionary, Encarta
Africana, Researcher, and an online version with monthly updates. Titles for children include a series of products based on the popular children’s book and
television series, Scholastics The Magic School Bus. Microsoft’s productivity offerings include Microsoft Works, an integrated software program that contains
basic word processing, spreadsheet, and database capabilities that allows the easy exchange of information from one tool to another. Microsoft Picture It!
brand of products includes Picture It! Photo, with photo editing tools and wizards to easily capture, correct and create photos, and Picture It! Publishing, used
to create greeting cards and other print and Web based products. Microsoft Money offers leading tools and resources to conduct a wide range of financial
activities. The