( CNN ) -- Poor Steve Ballmer . The burly Microsoft CEO , who announced Friday that he will retire next year , has been the victim of some unfortunate timing . When he took over leadership of Microsoft in 2000 Ballmer had to follow iconic co-founder Bill Gates , who had built the software titan into the most valuable company in the world . Then Ballmer was blindsided by the swift rise of Steve Jobs and Apple , whose iPod , iPhone and iPad led a mobile revolution and made Microsoft appear slow and out of touch . On a more positive note , Ballmer has been credited more recently for re-imagining the company 's core product with the bold Windows 8 operating system and leading a 2013 revival of Microsoft 's once-flagging stock . Under his reign , Microsoft has a mixed record of success with its consumer products . Here 's a look at some of the company 's more notable hits and misses of the Ballmer era . Hits . Windows XP -- This version of Microsoft 's desktop operating system was released in 2001 and used on more than 80 % of PCs at its peak . The software also showed surprising staying power : Many IT managers , frustrated by the buggy Microsoft Vista , downgraded to the older but more reliable XP . Today , 12 years after its launch , XP still runs almost 39 % of the world 's desktop computers . Xbox -- Launched in 2001 , the venerable video gaming console and its successor , the Xbox 360 , have sold more than 100 million units . Some blockbuster games , such as the `` Halo '' and `` Gears of War '' series , are available only for the Xbox . Its Kinect system was hailed as a step forward in motion-control gaming , while Xbox Live , Microsoft 's online multiplayer gaming network , now has more than 46 million members worldwide . Microsoft will release its next-generation console , the Xbox One , in November . Bing -- Ballmer in 2009 introduced Microsoft 's Bing search engine , which drew praise for its attractive visuals and predictive-text features that produced search suggestions before users were done typing queries . It wo n't challenge Google 's dominance any time soon , but Bing has emerged as a credible rival . It has gradually increased in popularity and now commands almost 18 % of the U.S. search engine market . Windows Phone 7 ( and 7.5 ) -- With this launch in late 2010 and early 2011 , Microsoft completely rebuilt its mobile operating system from the ground up by adding a more intuitive interface , better social-networking tools and a high-def screen with colorful `` live tiles . '' It was a radical move for a company that for years had been playing it safe . Misses . Internet Explorer 6 -- This version of Microsoft 's widely used desktop browser was roundly criticized for its security flaws and lack of support for modern Web standards . Zune -- In 2006 , Microsoft finally launched its answer to Apple 's hot-selling iPod . But the clunky Zune line of portable media players never caught on , and by late 2009 their market share had dropped to 2 % . It did n't help that at midnight on December 31 , 2008 , all of Zune 's 30GB models froze up for a day -- a problem with the way the device 's internal clock recognized ( or did n't recognize ) leap years . Microsoft put the Zune out of its misery in 2011 . Vista -- Released in 2007 , this successor to Windows XP was an immediate dud . Critics complained about its cost , sluggish speed , restrictive licensing terms and how Vista aimed to discourage the copying of protected digital media . One survey of corporate users found only 8 % said they were `` very satisfied '' with the operating system . Stung by the reaction , Microsoft rushed out Windows 7 less than three years later . Surface tablets -- Again , Microsoft found itself chasing Apple , this time with a belated attempt to dethrone the market-leading iPad . Launched in October 2012 -- more than two years after the original iPad -- the Surface tablet was Microsoft 's first attempt to integrate its new Windows 8 operating system with its own hardware . Despite some good reviews , the Surface has n't clicked with consumers . Microsoft earned only $ 853 million from the Surface between its launch last fall and the close of the company 's fiscal year -- a small fraction of iPad sales revenue during that time . Said AllThingsD , `` That 's a particularly sad showing for the tablet , given the blustering smack-talk with which Microsoft launched the device . ''
Microsoft CEO Steve Case announced Friday that he will step down in the next 12 months . Under Ballmer 's reign , Microsoft has had a mixed record of success with its products . The Xbox console has been a consistent seller , while the now - defunct Zune online player was a failure .