I think the key was that Microsoft could see the market was expanding exponentially. I think grasping the effects of exponential change is difficult for the human mind but I think Gates, et al grasped that.

Exchanging a smaller short term reward for control of something exponentially growing is obvious in hindsight but a brilliant insight at the time.

There other insight was to go for the business and not home market like so many, frankly, better products in the 80s. The difference being that businesses replace their equipment once it’s been written off. The cycle times for home and educational users being much longer.

Agreed. Now that I think about it, Gates' personality and insecurity also played a hand:

https://hardcoresoftware.learningbyshipping.com/p/019-billg-...