Microsoft released Windows 1.0 in 1985 as a graphical extension for MS-DOS, but it had limited functionality and was not very successful. In 1990, Windows 3.1 was released with improved multitasking capabilities and a more polished interface, making it the first widely successful version of Windows. The document discusses the early versions of Windows, starting with Windows 1.0 in 1985 and focusing on the improved Windows 3.1 release in 1990.