Windows Weekly 982

Microsoft's earnings report went out last week, and the company spent a lot on AI in the quarter. Microsoft updates its customers on what it's done to address Windows 11 problems. And Xbox kills Copilot plans for the console.

Microsoft Earnings

• Microsoft announced that it earned a net income of $31.8 billion on revenues of $82.9 billion in the previous quarter.
• Windows: 1.6 billion monthly active devices, a focus on quality after years of enshittification - but revenues from PC makers were down 2 percent YOY.
• Microsoft Edge “has taken share for 20 consecutive quarters,” which isn’t supported by the evidence.
• Bing “monthly active users reached one billion for the first time,” raising questions about how Microsoft defines the term “user.”
• Xbox: “The team is recommitting to our core fans and players, and shaping the future of play,” new records for monthly active Xbox users and game streaming hours.
• AI: Capex spending in the quarter was $32 billion, down from previous quarter as previously described, but up 49 percent YOY.

More earnings

• Apple, Google/Alphabet, and Amazon.
• AMD - Up because of AI datacenter.
• Qualcomm - Plus, Intel just hired away a key Qualcomm exec.

Windows

• Microsoft shares an update about what it’s done to address Windows 11 pain points so far.
• Marcus Ash is one of the good guys.
• Some of this is happening in Insider, some is rolling out to retail.
• Windows Insider Program and Windows Update improvements we discussed last week - two primary channels in WIP now.
• Simplifying AI experiences - fewer Copilot icons (Notepad, etc.).
• File Explorer improvements - performance, fewer hangs, better polish and consistency.
• Widgets - Feed will be off by default, fewer interruptions, no hover activate.
• System performance - Smaller memory footprint, more aggressive RAM restoration, and more.
• Soon: Taskbar updates, Start updates, and more to share at Build in June.
• Week D update arrives with a peek at May’s Patch Tuesday.
• Major: Xbox Mode, AI agents on the Taskbar are the first two big features of 2026.
• Minor: Also adds File Explorer improvements, new haptic feedback effects, touch keyboard improvements, and more.
• Shocking new report that Microsoft Edge is incredibly insecure should surprise no one.

AI

• Microsoft Agent 365 Platform is out of preview, supports local AI agents and Copilot Cowork Agent arrives on mobile with plugin support.
• Microsoft launches a Legal AI Agent in Word.
• Apple’s plan to open up to multiple third-party AIs is a good one.
• Canonical’s plan to add AI to Ubuntu is also good, but you’re never going to believe what happened next.

Xbox and Gaming

• Asha Sharma reorgs Xbox, kills Copilot on the console.
• Forza Horizon 6, more coming to Game Pass in May.
• Xbox April Update is out with updates for all platforms.
• Next Call of Duty will not ship on Xbox One, PS4.
• Age of Empires II: Definitive Edition is coming to the Mac for some reason.
• And finally, with the Supreme Court refusing to block the implementation of the ruling in Epic v. Apple, Microsoft’s Xbox game store for mobile is one step closer to happening.

Tips and picks

• Tip of the week: Embrace inconvenience.
• App pick of the week: Windows Defender.
• RunAs Radio this week: Securing Active Directory with Spencer Alessi.
• Brown liquor pick of the week: Stalk & Barrel Whisky.

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Check out Paul's blog at thurrott.com

The Windows Weekly theme music is courtesy of Carl Franklin.

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• Transcripts: Windows Weekly 982 Transcript

Links

• Microsoft Revenues Jump 18 Percent to $82.9 Billion in FY26Q3
• Microsoft Earnings Analysis: Pay No Attention to the Capex Behind the AI
• https://www.thurrott.com/apple/335575/apple-revenues-up-17-percent-to-111-2-billion
• Google/Alphabet Revenues Up 22 Percent to $109.9 Billion
• Amazon Revenues Up 17 Percent to $181.5 Billion
• AMD Revenues Jump 38 Percent to $10.3 Billion
• Qualcomm Revenues Decline 3 Percent to $10.6 Billion
• Intel Hires Away Key Qualcomm Executive
• Windows quality update: Progress we’ve made since March
• Optional April Update for Windows 11 Brings AI Agents on Taskbar, More
• Microsoft is Rolling Out Xbox Mode in Windows 11
• Microsoft Edge Loads All Saved Passwords in Plain Text Upon Launch
• Microsoft Agent 365 Platform Goes Out of Preview and Adds Support for Local AI Agents
• Microsoft’s Copilot Cowork Agent Launches on Mobile and Adds Plugins Support
• Microsoft Launches New Legal AI Agent in Word
• Apple Will Reportedly Allow Third-Party Models to Power Apple Intelligence Features
• Canonical is All-In on AI in Ubuntu Linux
• Xbox CEO Announces Leadership Changes, Kills Copilot on Console Plans
• Forza Horizon 6, Subnautica 2, and More Are Headed to Game Pass in May
• The Xbox April Update is Here
• The Next Call of Duty Game Won’t Be Released on PlayStation 4 and Xbox One
• Age of Empires II: Definitive Edition is Coming to macOS on May 28
• U.S. Supreme Court Rejects Apple Emergency Stay in Epic Games Case
• From the Editor’s Desk: Inconvenient
• 2026 Security Checkup: Bad Medicine
• Zed, the Rust-Made Coding Editor, Hits 1.0
• RunAs Radio this week: Securing Active Directory with Spencer Alessi
• Brown liquor pick of the week: Stalk & Barrel Whisky