The decline of QEMM started with the bundling of a memory manager in Digital Research's DR DOS 5.0, released in 1990. To catch on, Microsoft included its own EMM386 in MS-DOS 5.0, while previously the memory management functionality was only available with Windows. QEMM could still be used instead, notably with Windows 3.1x, but only for incremental benefit. Sales of QEMM declined. In August 1994, after three quarters of losses, the company laid off 25% of their employees and the CEO, president, and founder Terry Myers resigned.