A Sea of Blues and Greens - Another Round of Buyout Offers Sent to Microsoft's Workforce

Windows 11 and Microsoft’s Strategy

Microsoft’s efforts to address Windows 11 pain points are welcome, but Paul Thurrott argues that many long-standing complaints—such as ads, unwanted integrations, and pressure to use Microsoft accounts—remain separate from the improvements being highlighted.

The panel speculates that Microsoft is improving Windows partly to make it a more credible platform for AI, especially local AI. A future Windows AI layer may need to decide whether tasks should run locally or in the cloud, much as the operating system schedules other work.

Windows improvements and feature rollouts are staggered, so devices running the same build may not receive the same features at the same time. Features discussed in Insider builds include:

• Mobile-device controls in Quick Settings: Shortcuts for controlling a connected phone. The panel views this as a modest convenience rather than a major change.
• Internet speed-test shortcut: In the version discussed, the shortcut opens a Bing webpage rather than running a test integrated into Windows.

Windows has also gained recovery and resilience features, including reinstalling Windows through Windows Update while retaining apps and data, point-in-time restore, and Quick Machine Recovery. The panel connects these efforts to Microsoft’s broader security and resiliency initiatives.

Microsoft Buyouts and Quarterly Results

Microsoft announced a new voluntary exit offer for eligible employees in participating teams in the US, UK, India, and Canada. The offer could reach about 60,000 employees—roughly a quarter of Microsoft’s global workforce—but is not available to everyone in those countries.

The hosts compare it with a previous US offer, which reportedly saw about 30% of eligible employees accept. They view voluntary exits as preferable to abrupt layoffs, while noting that employees may be weighing the offer against the possibility of later cuts.

The panel speculates that the offer is connected to Microsoft’s spending needs and the changing nature of its business, but does not present that as an officially stated reason.

Microsoft reported $92.3 billion in revenue, up 19% year over year, and $36.6 billion in net income, up 32%, according to the figures discussed on the show. The Devices and Consumer business was down 3% to $15.5 billion; the other major businesses accounted for most of the remaining revenue and were growing.

Local AI and the RTX Spark

Thurrott describes continued difficulty getting local AI tools to complete practical coding tasks on an RTX Spark system. He found that performance depends not just on the model, but also on the app or agent framework, runtime, tools, and how the task is specified.

In one experiment, an agent spent nearly two hours producing a basic Notepad-like app. It ran, but lacked modern features and had functional shortcomings. The system also became very hot and loud. The hosts suggest starting with smaller, clearly defined tasks and using detailed specifications, which can make smaller models more useful.

The discussion characterizes local AI as promising but immature for complex work such as software development. The hosts expect more capable local systems to run as always-on, possibly headless computers at home or in an office, accessed from lighter devices.

They also discuss the economics of buying expensive local hardware versus paying for cloud AI subscriptions, while acknowledging that subscription pricing may change.

Security, Software, and AI News

• Microsoft Authenticator for Android: Microsoft fixed a vulnerability disclosed by security researchers. The flaw could allow a malicious app on a device to access data associated with the user’s Microsoft work or school account, including email, calendars, Teams messages, and files. The fix had already been released by the time of the show; Android users were advised to update.
• Software security: The hosts discuss the growing urgency of security fixes, including the possibility that AI tools will uncover vulnerabilities more quickly. They point to Microsoft’s resilience work and broader industry efforts to patch flaws rapidly.
• PowerToys: Two utilities were added: one to hide the mouse pointer while typing, and another to make mouse-button holding easier for drag-and-drop tasks. The release also included other updates.
• Arc browser: The Browser Company is retiring Arc. Some features were due to be disabled the following month, with the browser scheduled to stop working on December 22. The hosts praise Arc’s distinctive interface and vertical-tab experience, while noting that its successor, Dia, is the company’s focus.
• Anthropic: The company filed IPO paperwork. The panel notes that its revenue is growing, but that AI companies face significant expenses and commitments for computing infrastructure.
• Canva: Canva announced its first AI model, an image-generation model aimed at design work. The hosts also discuss Canva’s free Affinity creative-software suite and its plans for an iPad version.
• Opera: Opera is adding local AI features to its desktop browsers using the proposed WebAI standard, building on earlier experimental local-AI support.
• Apple: Apple announced AI features for its iWork and Creator Studio apps. The hosts point out the contrast with criticism Microsoft has received for adding AI to Windows and its productivity software.

Xbox and Gaming

The panel says there was little Xbox news. Thurrott describes the latest Call of Duty as an improvement over recent entries, but says it does not solve the franchise’s tendency to feel repetitive.

Discussion of Xbox’s future centers on Project Helix, a planned Windows-based console. The show cites reports that an Xbox-branded handheld could arrive in 2027, followed by a living-room console in 2028. The rumored price range for the console was described as very high.

Thurrott argues that Xbox could be more profitable without making its own hardware, while recognizing that many fans want Microsoft to continue producing consoles. He sees potential in Windows-based Xbox hardware supporting a broader range of PC games and storefronts.

Tips, Guides, and Recommendations

• Windows 11 installation: Thurrott says familiar workarounds for creating a local account during Windows setup still work in version 26H2. He recommends using Rufus to create installation media.
• Arm PC setup: Installation media may lack Wi-Fi drivers. His workaround is to connect Ethernet, run Windows Update to obtain drivers, and then connect to Wi-Fi. He says he tested the process on both Arm and x64 systems.
• Firefox: Thurrott recommends keeping Firefox as an alternative browser, praising Mozilla’s modernization work and features such as container tabs. The hosts also mention Mozilla’s recent advertising campaign.
• RunAs Radio: Richard Campbell highlights an episode featuring Elizabeth Christensen about PostgreSQL in cloud environments, including its uses, administration, security, backups, high availability, and analytics.

Main Speakers and Sources

• Micah: Guest host, filling in for Leo Laporte.
• Paul Thurrott: Windows and Microsoft analysis, software commentary, and Windows installation tips.
• Richard Campbell: Technology and developer commentary; host of RunAs Radio.
• Other sources discussed: Microsoft announcements and earnings, security researchers at Enclave, and the RunAs Radio interview with Elizabeth Christensen.