Home / Technology / Microsoft CEO Admits Consumer Business Decline
Microsoft CEO Admits Consumer Business Decline
1 May
Summary
- Microsoft CEO acknowledges losing consumer business grip.
- Company is undertaking foundational work to regain consumers.
- AI backlash and competition impact Windows perception.
Microsoft CEO Satya Nadella recently acknowledged a decline in the company's consumer business during an earnings call. He stated that Microsoft is engaged in foundational work to win back customers and enhance engagement across its consumer products, including Windows, Xbox, Bing, and Edge.
The company is currently prioritizing fundamentals, focusing on improving quality and serving its core users. This strategy is reflected in ongoing efforts to boost performance and reliability for future Windows 11 updates. Xbox is also recommitting to its core player base and shaping the future of gaming.
Despite championing AI, Microsoft has faced consumer backlash due to concerns that AI features have led to bloated Windows experiences. This has allowed competing operating systems like Apple's macOS and Linux distributions to gain traction. However, Nadella noted that monthly active Windows devices still exceed 1.6 billion.
Furthermore, Microsoft is seeing significant growth in its AI offerings. First-party AI agents have experienced a six-fold increase in monthly active usage year-to-date. Copilot queries have risen by nearly 20% quarter-over-quarter, reaching engagement levels comparable to Outlook.
