Windows 98 Truce Reached? Reports Say Justice Department Won’t Block Release Of New Microsoft Software

Microsoft’s stock soared, Netscape’s stumbled.

And computer pundits heightened their rhetoric over the Microsoft antitrust case.

But word on Thursday that Microsoft Corp. may win a partial victory against the Justice Department drew a collective yawn from the people presumably with the most at stake: Everyday buyers of personal computers.

Sparking the scattered excitement was a report that the Justice Department likely will not block Microsoft from releasing its Windows 98 operating software with a built-in Internet browser.

Few consumers and business technology managers on Thursday said the development would affect their buying plans. Most planned to buy new machines even if they run on Microsoft’s current but aging Windows 95 system, which meets most of their needs for running applications and cruising the Internet.

Moreover, the PC users were only marginally aware of the latest development in the relatively esoteric battle in Washington.

The muted reaction illuminates the split between Microsoft’s foes and PC users, most of whom just want a decent machine at a good price.

The Wall Street Journal, quoting unnamed sources, said the Justice Department may also push for Microsoft to release an alternate version of its Windows 98 operating program - with access to the Internet browser hidden.

Such a two-pronged approach could have a profound impact on the tech wars. On one hand, Microsoft - by integrating its browser into its operating software - could continue to invade the browser turf of market leader Netscape Communications Corp.

But antitrust enforcers, by forcing Microsoft to also offer an alternate version of Windows 98 - giving PC users a choice of operating systems - could begin to restrain Microsoft’s powerful marketing strategy of making new software part of its popular programs.