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Microsoft has a problem: lack of demand for its AI products

(www.windowscentral.com)
296 points mohi-kalantari | 2 comments | 08 Dec 25 16:54 UTC | HN request time: 0.482s | source
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neilalexander ◴[08 Dec 25 17:13 UTC] No.46194859[source]▶
I would think that if they actually spent the time and money fixing the core functionality of their core products (like Windows and Office) that they might have a much easier time promoting things like Copilot. Instead they leave their users wondering why they're so hell-bent on shoehorning AI into a Start menu that takes whole seconds longer to open than it should or into Windows Search that regularly fails to find installed programs or local files.
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mrweasel ◴[08 Dec 25 17:20 UTC] No.46194942[source]▶
As long as companies, and consumers, still pick Windows and Office, then why spend the resources. Making Windows better won't move the sales number significantly, but removing the ads and the potential AI upsell is a direct hit to revenue.

The sad reality seems to be that Microsoft do not care about the majority of their products anymore. Only Azure, Microsoft 365 CoPilot, CoPilot and maybe CoPilot.

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1. falcor84 ◴[08 Dec 25 17:24 UTC] No.46194985[source]▶
I'm not familiar with many "consumers" who still pick a Windows and Office, and in this generation, there are very few consumers picking xbox. Outside of enterprises, they seem to be losing market share everywhere, and at this rate they'll be akin to IBM or Oracle in a few years.
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2. airstrike ◴[08 Dec 25 17:27 UTC] No.46195025[source]▶
Office is part of the "Productivity and Business Processes" at Microsoft. That business unit had $120B of revenue in 2025.

Microsoft 365, which I believe includes Office, makes up $95B of that amount, which is split between Commercial (92%) and Consumer (8%)

From there you can see why they're focused on Enterprise.

Source: https://www.bamsec.com/filing/95017025100235?cik=789019 (page 39)