[dbarlett]

Yes, famously. Bill Gates sent his "Internet Tidal Wave" memo in 1995 and admitted they were behind:

  Some competitors have a much deeper involvement in the Internet than
  Microsoft. All UNIX vendors are benefiting from the Internet since the
  default server is still a UNIX box and not Windows NT, particularly for
  high end demands, SUN has exploited this quite effectively.
  [...]
  Browsing the Web, you find almost no Microsoft file formats. After 10
  hours of browsing, I had not seen a single Word .DOC, AVI file, Windows
  .EXE (other than content viewers), or other Microsoft file format.
  [...]
  A new competitor “born” on the Internet is Netscape. Their browser is
  dominant, with 70% usage share, allowing them to determine which network
  extensions will catch on. They are pursuing a multi-platform strategy where
  they move the key API into the client to commoditize the underlying operating
  system.

[1] http://www.wired.com/2010/05/0526bill-gates-internet-memo/al...