In 1993, Microsoft shipped a product that felt like science fiction. For $99.95, you could slide a single CD-ROM into your beige tower PC and gain access to an entire encyclopedia—complete with audio narration, video clips, interactive maps, and 3D animations. It was called Microsoft Encarta, and for an entire generation of students, it was the first time knowledge felt alive.
For sixteen years, Encarta was the world's best-selling encyclopedia. It crushed the print encyclopedia industry, forced Encyclopaedia Britannica to the brink of bankruptcy, and became the default homework tool for tens of millions of families. Then, in 2009, Microsoft quietly pulled the plug. The killer? A free website run by volunteers that nobody at Microsoft had taken seriously: Wikipedia.
This is the story of how Encarta changed everything about how we access knowledge—and how it was destroyed by the very digital revolution it helped create.
The Birth of Multimedia Knowledge (1985–1993)
Encarta's origins trace back to 1985, when Microsoft began exploring the potential of CD-ROM technology. At the time, a single CD-ROM could hold 650 megabytes of data—the equivalent of roughly 250,000 pages of text. Bill Gates saw an opportunity: what if you could fit an entire encyclopedia onto a single disc and enhance it with multimedia?
Microsoft initially approached Encyclopaedia Britannica about licensing their content for a digital product. Britannica's executives, sitting atop a highly profitable business built on door-to-door sales of leather-bound volumes priced at $1,500 to $2,200 per set, dismissed the idea. They couldn't imagine their prestige brand being reduced to a $99 CD-ROM. It was one of the great miscalculations in publishing history.
Rejected by Britannica, Microsoft turned to Funk & Wagnalls, a budget encyclopedia brand sold in supermarkets. The content wasn't prestigious, but it was licensable. Microsoft's team, with Tom Corddry playing a key role, spent years enhancing the text with multimedia elements: audio pronunciations, video clips from news archives, interactive timelines, and explorable maps. The project was codenamed "Gandalf" before being renamed Encarta, a portmanteau of "encyclopedia" and a Latin suffix suggesting inclusiveness.
Microsoft Encarta launched on March 22, 1993, initially as Encarta Multimedia Encyclopedia. It shipped on a single CD-ROM and required a PC running Windows 3.1 with at least 2 MB of RAM and a sound card. The retail price was $395, though it was quickly bundled with new PC purchases and eventually dropped to $99.95 for the standalone version and $54.95 for the standard edition.
The Features That Made It Revolutionary
To understand why Encarta mattered, you have to remember what research looked like before it existed. In 1993, if you were a seventh-grader assigned a report on Ancient Egypt, your options were: drive to the public library and hope the right volume of World Book wasn't checked out, or beg your parents to buy a $1,500 encyclopedia set. Encarta changed that calculus overnight.
The multimedia features were genuinely groundbreaking for the era. MindMaze, a trivia game set in a medieval castle, became one of the most beloved educational games of the 1990s. Players navigated rooms by answering questions drawn from Encarta's articles, and for many kids, it was the reason they actually opened the encyclopedia at all. The game was so popular that Microsoft kept it through every version of Encarta until the product was discontinued.
The interactive atlas let you zoom into any country on Earth, click on cities to read about them, and hear native pronunciations of place names. The timeline feature let you scroll through human history and click on events to read full articles. Audio clips let you hear Martin Luther King Jr.'s "I Have a Dream" speech, Mozart's symphonies, and whale songs—all from the same application.
By 1994, Encarta had become a pack-in title with most new multimedia PCs. Companies like Compaq, Gateway, and Packard Bell bundled Encarta with their desktop computers, making it as standard as a mouse or keyboard. For many families, Encarta was the primary justification for buying a home computer at all.
Crushing the Competition (1994–2000)
Encarta's impact on the traditional encyclopedia industry was devastating and swift. In 1990, the print encyclopedia industry in the United States was a massive business worth hundreds of millions of dollars annually. By the mid-1990s, sales had collapsed, and by 2000, the industry was a shadow of its former self. Encarta didn't just compete with print encyclopedias—it annihilated them.
The casualties were legendary. Encyclopaedia Britannica, which had turned down Microsoft's licensing deal, watched its sales plummet dramatically—falling to roughly $453 million by 1994 and continuing to decline. The company laid off its entire door-to-door sales force—2,300 people—and was eventually sold by the Benton Foundation to Swiss financier Jacob Safra in 1996 for a fraction of its former value. Britannica finally released its own CD-ROM in 1994, priced at $995, but it was too little, too late. They eventually dropped the price to $125, then to $85, but Encarta's bundling advantage was insurmountable.
Compton's Encyclopedia, Grolier's, and World Book all suffered similar fates. Compton's had actually been the first encyclopedia on CD-ROM in 1989, but its product lacked Encarta's multimedia polish and Microsoft's distribution muscle. World Book survived by pivoting to schools and libraries, but its consumer business was gutted.
At its peak in the early 2000s, Encarta was available in seven languages, contained over 62,000 articles (in the English version), thousands of images and illustrations, hundreds of video and audio clips, interactive maps, and 3D virtual tours. The premium DVD version, Encarta Premium, shipped on multiple discs and included an integrated homework help system, a dictionary, a thesaurus, and a full world atlas.
Microsoft also launched Encarta Online in 1999, offering a free basic version and a premium subscription. By 2000, it was one of the most visited reference sites on the internet, attracting millions of unique visitors per month.
The Wikipedia Problem (2001–2006)
On January 15, 2001, Jimmy Wales and Larry Sanger launched Wikipedia, a free online encyclopedia that anyone could edit. In its first year, it had about 20,000 articles in English. It was scrappy, riddled with errors, and nobody at Microsoft considered it a threat.
They should have. Wikipedia's model had two advantages that Encarta could never match: speed and scale. When something happened in the world—a tsunami, an election, a scientific discovery—Wikipedia could have an article up within hours. Encarta's articles were written and reviewed by professional editors, which meant updates happened once a year, with the annual CD-ROM release. In a world that was moving faster every day, that delay became fatal.
By 2003, Wikipedia had surpassed Encarta in article count. By 2005, it had over 750,000 English-language articles compared to Encarta's roughly 62,000. A landmark 2005 study published in the journal Nature compared 42 science articles from Wikipedia and Encyclopaedia Britannica and found that Wikipedia averaged about four inaccuracies per article compared to Britannica's three—far closer in quality than most people expected. While the study compared Wikipedia to Britannica rather than Encarta directly, it legitimized Wikipedia in the public mind.
The economics were equally brutal. Encarta required a large editorial staff, multimedia producers, and licensing agreements. Wikipedia's content was produced by volunteers for free. Microsoft was spending millions to create a product that a decentralized army of unpaid contributors was producing at higher volume and comparable quality—and giving away for nothing.
The Decline and Death (2006–2009)
By 2006, the writing was on the wall. Encarta's sales had been declining for years as broadband internet made Wikipedia and other free online resources ubiquitous. Microsoft attempted to fight back: they made Encarta Online free with advertising, launched a "wiki-like" feature that let users suggest edits to articles, and integrated Encarta content into MSN Search. None of it worked.
On March 30, 2009, Microsoft announced that Encarta would be discontinued. The CD/DVD versions were immediately pulled from sale, and the online version was shut down on October 31, 2009 (December 31, 2009 for the Japanese version). The announcement was buried in a blog post—no press conference, no fanfare. Sixteen years of the world's most popular encyclopedia ended with a whimper.
Microsoft's official statement acknowledged the obvious: "People today seek and consume information in considerably different ways than in years past." Translation: Wikipedia won.
The Legacy Nobody Talks About
Encarta's death is usually told as a simple story: expensive product loses to free alternative. But that misses the deeper significance. Encarta was one of the first products to prove that digital media could replace physical media for knowledge work. It trained an entire generation to expect that information should be searchable, multimedia-rich, and instantly accessible. In many ways, Encarta created the expectations that Wikipedia fulfilled.
MindMaze alone shaped how millions of children thought about learning. The idea that education could be gamified—that you could learn about the French Revolution while navigating a virtual castle—was radical in 1993. Today, that concept underpins entire industries.
Encarta also demonstrated the power and peril of bundling as a business strategy. By giving Encarta away with new PCs, Microsoft destroyed the print encyclopedia industry—but it also destroyed any possibility of building a sustainable standalone business. When a free competitor emerged, there was no loyal paying customer base to defend.
For those of us who grew up with Encarta, it occupies a strange emotional space. It was the gateway drug to digital knowledge. The first time you heard a whale song on your family's Compaq, or watched a grainy video of the Moon landing, or got lost in MindMaze for three hours when you were supposed to be writing about photosynthesis—those moments mattered. They were the first glimpse of what the internet would eventually become.
FAQ
When was Microsoft Encarta first released?
Encarta launched on March 22, 1993, as a CD-ROM encyclopedia for Windows 3.1.
How much did Encarta cost?
The original retail price was $395, but it was commonly bundled with new PCs. Later versions sold for $54.95 to $99.95 depending on the edition.
Why did Microsoft discontinue Encarta?
Microsoft announced on March 30, 2009, that Encarta would be discontinued due to the shift in how people access information online, particularly the rise of free resources like Wikipedia.
How many articles did Encarta have?
At its peak, the English version contained over 62,000 articles, along with thousands of multimedia elements.
What was MindMaze?
MindMaze was a trivia game built into Encarta where players navigated a medieval castle by answering questions drawn from the encyclopedia's articles. It became one of the most beloved educational games of the 1990s.
Did Encyclopaedia Britannica really turn down Microsoft?
Yes. In the late 1980s, Microsoft approached Britannica about licensing content for a multimedia encyclopedia, but Britannica declined, not wanting to undermine their premium print business.
Is there any way to use Encarta today?
No official version is available. The CD/DVD versions were discontinued and the online service was shut down in 2009. Some enthusiasts have preserved copies that can run in virtual machines, but there is no supported version.