In 2025, Microsoft faced challenges including a slow migration to Windows 11 after the end of Windows 10, with many users opting to stay on the older system due to free Extended Security Updates. The anticipated rush to Windows 11 did not occur, partly because many older PCs did not meet the new system requirements. Microsoft increased its focus on AI integration in Windows 11, but this initiative faced backlash from users concerned about unnecessary features and existing bugs. The annual upgrade brought only minor improvements, and persistent bugs continued to affect user experience, particularly for gamers, who faced disruptions amid rising competition from platforms like SteamOS. Additionally, a significant price increase for Xbox Game Pass led to subscriber cancellations, although revenue remained high. Xbox console sales dropped by 70% year-on-year, while the Surface hardware division did not achieve the same success as the previous year, with new devices failing to generate excitement.