Any version of Windows after I think XP kind of does defragging automatically. At least to the point where the user is told it isn't necessary to do manually.
When NTFS was first released Microsoft claimed it was so awesome it didn't need defragging. In later releases of Windows NT they added a defragger. By around the time of XP this was automatically scheduled to run in the background.
tldr: NTFS does a better job of avoiding fragmentation than FAT, but both need defragging.
