'We are focused on fundamentals, prioritizing quality, and serving our core users better': Satya Nadella teases big Windows improvements – and changes could come this year

Microsoft CEO Satya Nadella appears to have extended an olive branch to Windows users after several months of backlash over the direction of the operating system.

During the company’s Q3 earnings call, Nadella highlighted ongoing efforts to improve experiences for Windows, Xbox, Bing, and Edge users.

“When it comes to our consumer business, we are doing the foundational work required to win back fans and strengthen engagement across Windows, Xbox, Bing, and Edge,” he told listeners.

“In the near term, we are focused on fundamentals, prioritizing quality and serving our core users better”.

Latest Videos From

Nadella pointed to improvements the tech giant has already made on this front, including performance boosts for lower-memory devices, as well as a more “streamlined” Windows Update process.

He added that it has “brought back focus to core features and fundamentals that matter most to our customers”.

Nadella’s comments come in the wake of long-running concerns about the future of the Windows operating system, particularly on the topic of AI integration.

In November last year, Windows chief Pavan Davuluri sparked controversy after outlining plans to transform Windows into an “agentic OS”.

Davuluri’s X post suggested the company aimed to offer a “multi-modal” experience for users, with an array of AI features baked into the operating system.

The post sparked a fierce backlash among users, with some questioning why the tech giant was focusing so heavily on integrating AI features while other areas like performance and reliability were being overlooked.

The furore appears to have resonated with the company, and in March this year Davuluri detailed plans to dial back "unnecessary" Copilot features within the operating system.

In a blog post at the time, Davuluri said the company will only integrate AI where it’s “most meaningful”.

“You will see us be more intentional about how and where Copilot integrates across Windows, focusing on experiences that are genuinely useful and well‑crafted,” he wrote.

That same move by the company also marked efforts to improve feedback from users - the “largest update to Feedback Hub yet” - which aimed to make it easier to submit feedback.

A looming Windows overhaul?

Efforts to build on Davuluri’s March pledges appear to be accelerating, according to recent reports from Windows Central.

Citing sources close to the matter, the publication noted an internal project dubbed ‘Windows K2’ is already underway and working on sweeping upgrades to performance, reliability, and user experience.

These efforts won’t come in the form of a dedicated update, but instead will be intermittent improvements on a rolling basis.

Performance, in particular, is a key focus of the initiative. Company documents viewed by the publication suggest the tech giant is aware that performance has been a recurring pain point for users, specifically in applications such as File Explorer.

Elsewhere, UI improvements aim to deliver a smoother experience for Windows 11 users, according to Windows Central.

The report tracks with the key focus areas identified by Davuluri in his March blog post, which included goals to deliver a “faster and more dependable File Explorer” as well as taskbar customization and "more control over widgets and feed experiences".

Nadella touts strong Windows uptake

Elsewhere in the earnings call, Nadella hailed strong user growth on Windows 11 – an area in which the company has faced an uphill battle.

Figures touted by the Microsoft chief now put monthly active users at over 1.6 billion.

Windows 11 uptake has been sluggish since its launch in 2021, largely due to the huge popularity of its predecessor. Indeed, Windows 11 only overtook Windows 10 in popularity last year, nearly four years after its official release.

As ITPro reported at the time, figures from Statcounter showed the newer OS finally edged into the lead in mid-July.

Nadella’s comments came as Microsoft announced strong quarterly earnings. Chief financial officer (CFO) Amy Hood said the company “delivered results that exceeded expectations across revenue, operating income, and earnings per share”.

Annual revenue run rate for Microsoft’s AI business surpassed $37 billion in the company’s third quarter, growing 123% year-over-year.

Business is also booming for Microsoft Cloud, Nadella noted, which exceeded $54 billion in revenue, marking a 29% increase year-over-year.

FOLLOW US ON SOCIAL MEDIA

Follow ITPro on Google News and add us as a preferred source to keep tabs on all our latest news, analysis, views, and reviews.

You can also follow ITPro on LinkedIn, X, Facebook, and BlueSky.