Why did early microcomputer companies need application software?
Early microcomputer companies needed application software because the availability of useful programs was a primary factor in determining a computer's commercial success. While early machines were often marketed to hobbyists, the development of software—such as word processors and spreadsheet tools like VisiCalc—was essential to demonstrate the practical value of these devices to nontechnical users and small-business owners.12
By providing functional tools, companies could convince individuals that they could effectively operate a computer for tasks like business forecasting and financial analysis. Furthermore, as the industry matured, companies realized that an operating system like CP/M was necessary to attract more software developers to their specific hardware platforms. Ultimately, firms like IBM recognized that software was required to make a computer truly useful, leading them to contract with developers to ensure a robust library of applications was available at launch.123