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By version 3.0, IE was roughly a feature-for-feature equivalent of Netscape Communicator, and by version 4.0, it was generally considered to be more stable on Windows than on the Macintosh platform. Netscape Navigator was not free to the general public until January 1998, while Internet Explorer and IIS have always been free or came bundled with an operating system and/or other applications.

Microsoft also targeted other Netscape products with free workalikes, such as the Internet Information Server (IIS), a web server which was bundled with Windows NT. Meanwhile, Netscape faced increasing criticism for the bugs in its products; critics claimed that the company suffered from 'featuritis' – putting a higher priority on adding new features than on making them work properly.

The Mozilla mascot featured prominently on Netscape's web site in the company's early years.The stock closed at US.25, which gave Netscape a market value of US.9 billion.While it was unusual for a company to go public prior to becoming profitable, Netscape's revenues had, in fact, doubled every quarter in 1995.Netscape later experimented with prototypes of a web-based system which would enable users to access and edit their files anywhere across a network, no matter what computer or operating system they happened to be using.This did not escape the attention of Microsoft, which viewed the commoditization of operating systems as a direct threat to its bottom line, i.e.

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