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.

These show notes have been truncated due to length. For the full show notes, visit https://twit.tv/shows/windows-weekly/episodes/982

Hosts: Leo Laporte, Paul Thurrott, and Richard Campbell

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WW 982: Don't Lick the Manta Rays - Breaking Down Microsoft's Earnings

Windows Weekly (Audio)