memo

Winsage
July 11, 2026
Microsoft has laid off 4,800 employees, particularly in the Xbox division, raising concerns about the effectiveness of its management structure, which includes 14 layers of middle management. A leaked internal project, "Project Aion," proposes a web-native operating system integrated within Microsoft Edge, replacing the traditional Start menu with Copilot. The podcast discusses consumer skepticism regarding AI adoption and the high costs of cloud-based large language models. Upcoming products include the Surface Laptop 8 and Surface Pro 12, which will feature a new 24 GB RAM configuration and more affordable 8 GB options. Additionally, Microsoft has confirmed the discontinuation of the 10-inch Surface Go and Surface Laptop Go lines.
Winsage
July 11, 2026
Microsoft is undergoing significant changes, including layoffs of 4,800 positions primarily in the Xbox division. An internal memo by Asha Sharma revealed 14 layers of middle management within Xbox, raising concerns about leadership effectiveness. The podcast discussed the reasons for the layoffs and management's failure to leverage franchises like Fallout and Minecraft. Additionally, a leak regarding "Project Aion," an experimental web-native operating system for 2024, was mentioned. The hosts also addressed consumer pushback against AI technologies and the associated costs. The anticipated launch of the Surface Laptop 8 and Surface Pro 12 will feature a 24 GB RAM option, while Microsoft has canceled the Surface Go and Surface Laptop Go lines.
AppWizard
May 29, 2026
Xbox CEO Asha Sharma indicated a strategic shift in Game Pass pricing, noting that a price reduction has effectively increased consumer interest. In April, Xbox acknowledged the need for "a better value equation" after a significant price increase in October 2025, where the Game Pass Ultimate subscription rose by 50% to .99 per month. Following Sharma's comments, Xbox reduced the Game Pass Ultimate subscription price to .99 per month, though this rate is still higher than pre-increase levels. As a result of these changes, Call of Duty titles will no longer be available on Game Pass at launch, with availability expected about a year later. Additionally, an ad-supported Xbox Cloud Gaming service has emerged, suggesting potential future models for Game Pass. Sharma also mentioned a rebranding of Xbox to XBOX, aimed at better engagement with the player base, although Xbox will not participate in this rebranding effort.
Winsage
May 22, 2026
Yusuf Mehdi, head of product marketing for AI and Copilot at Microsoft, is transitioning to a new role focused on reimagining Windows before leaving the company after 35 years. He aims to enhance Microsoft 365 services and the vision of One Copilot in the upcoming fiscal year. In late 2022, Pavan Davuluri initiated a reorganization to develop an agentic operating system, consolidating engineering and features teams for better cohesion. Microsoft plans to introduce a new agentic workspace feature with AI agents in secure sessions, allowing users control over data sharing. The company has moderated its AI integration strategy in Windows 11 to improve user sentiment and is addressing pain points through the Windows K2 project, which will continue through 2026. Jacob Andreou has been appointed as the lead for consumer and commercial Copilot experiences, reporting to CEO Satya Nadella. Mehdi expressed gratitude for his time at Microsoft and reassured his team of a smooth transition.
Winsage
May 22, 2026
Yusuf Mehdi, Microsoft's Consumer Chief Marketing Officer, is leaving the company after 35 years. He plans to continue working through the next fiscal year on projects related to Windows, Microsoft 365, and One Copilot. Mehdi's departure follows other notable exits at Microsoft, including Rajesh Jha, who will retire next month, and others such as Charlie Bell, Phil Spencer, and Sarah Bond, who left in February.
Winsage
May 22, 2026
Yusuf Mehdi, executive vice president and consumer chief marketing officer at Microsoft, has announced his intention to leave the company at the end of the 2026-27 fiscal year after 35 years with the organization. He plans to work through the next fiscal year to help reimagine Windows, grow services, and implement the One Copilot vision. Mehdi is collaborating with CEO Satya Nadella and CMO Takeshi Numoto for a smooth transition, but Microsoft has not yet named a successor.
AppWizard
May 8, 2026
31st Union, a studio under 2K Games, has confirmed layoffs affecting an undisclosed number of employees as it continues development on Project Ethos, a free-to-play hero shooter unveiled in 2024. Studio head Ben Brinkman indicated that changes were necessary to achieve the studio's goals. Project Ethos was initially described as a "roguelike hero shooter," but it allows players to choose randomized buffs during matches and features gameplay similar to Fortnite. The studio's previous head, Michael Condrey, was dismissed shortly after the game's announcement, and updates on Project Ethos have been limited since then. The layoffs at 31st Union follow similar cuts at 2K Games' Cloud Chamber in 2025. Take-Two Interactive's CEO has expressed disappointment over the lengthy development timelines for new titles, including the BioShock installment. Despite these challenges, Brinkman remains optimistic about the future of Project Ethos and the team's direction.
Winsage
April 27, 2026
Microsoft is revitalizing Windows 11 by rebooting the Windows Insider Program to better engage with user feedback and improve the operating system. The company aims to address bugs and enhance quality, signaling a shift in its approach. Recent developments indicate a renewed enthusiasm for the program, which has historically played a significant role in shaping user experiences and technology careers. Additionally, Surface enthusiasts are creating their own accessories through 3D printing due to unmet demands from Microsoft.
Winsage
April 27, 2026
Microsoft and OpenAI have redefined their partnership, ending Microsoft's exclusivity with OpenAI. Microsoft will continue as OpenAI's primary cloud partner, with products launching on Azure first, but OpenAI can now collaborate with other cloud providers if necessary. Key points include: - Microsoft retains its primary cloud partner status, with OpenAI products debuting on Azure unless Microsoft cannot meet capabilities. - OpenAI can distribute products across any cloud platform. - Microsoft's license to OpenAI's intellectual property is non-exclusive and extends through 2032. - Microsoft will no longer share revenue with OpenAI, while OpenAI will continue payments to Microsoft until 2030, capped at a predetermined total. - Microsoft remains a major shareholder in OpenAI. The partnership has faced challenges, including CEO Sam Altman's brief dismissal in late 2023, which displeased Microsoft CEO Satya Nadella. OpenAI's revenue chief acknowledged Microsoft's foundational support while indicating constraints on OpenAI's engagement with enterprise demands. Both companies are committed to ongoing collaboration amidst growing competition in the AI landscape.
AppWizard
April 27, 2026
Under CEO Asha Sharma, Xbox has reduced the price of Xbox Game Pass Ultimate from .99 to .99 and PC Game Pass from .99 to .99. The removal of day-one access to Call of Duty is part of this strategy, which aims to address consumer concerns and enhance the service's value. Microsoft reportedly faced a 0 million loss due to including Call of Duty: Black Ops 6 in Game Pass, prompting these price adjustments. Sharma's initiatives include a partnership with Discord, the introduction of Xbox Game Pass: Starter Edition, and plans for a Family Plan. The company is also focusing on improving the Xbox app for PC gaming and reevaluating its approach to exclusives. Frequent updates and player feedback will be prioritized as Xbox prepares for the next generation of consoles, referred to as Project Helix.
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