Microsoft Accelerates AI Strategy, Addresses Windows 11 Feedback, and Details Xbox Plans
Microsoft is significantly advancing its artificial intelligence strategy by broadening the internal use of Anthropic's Claude Code across its engineering teams and expanding AI-powered features in products like Microsoft Paint. Concurrently, the company is focusing engineering resources on addressing user feedback regarding Windows 11 performance and reliability. In parallel, Microsoft has detailed upcoming releases and initiatives for its Xbox gaming platform. Other corporate developments include new data center plans and an F1 sponsorship.
Microsoft's AI Strategy and Tool Integration
Microsoft is increasing the internal adoption of Anthropic's Claude Code, an AI coding tool, among thousands of employees, including non-developers. Divisions such as CoreAI and Experiences + Devices, which oversee Windows, Microsoft 365, and Bing, are actively testing the tool.
Non-technical employees are being encouraged to use Claude Code for prototyping ideas, and its use is approved across code repositories for Business and Industry Copilot teams.
Software engineers are expected to provide comparative feedback between Claude Code and GitHub Copilot.
Expanding Anthropic Partnership
Microsoft identifies as a key customer of Anthropic, with Anthropic AI model sales contributing to Azure quotas. While OpenAI remains Microsoft's primary AI partner, collaboration with Anthropic is expanding. This includes making Anthropic models available to Microsoft Foundry customers and integrating them into specific Microsoft 365 applications and Copilot features where their capabilities are deemed superior.
AI Enhancements in Products
In related AI developments, Microsoft Paint is set to introduce an AI-powered coloring book feature. This will enable users to generate coloring pages from text prompts on Copilot Plus PCs. Additionally, a technical preview of the GitHub Copilot SDK has been announced, designed to allow developers to integrate Copilot CLI capabilities into various applications. Microsoft CEO Satya Nadella and former UK Prime Minister Rishi Sunak recently engaged in discussions regarding the future of AI.
Windows 11 Performance and User Experience Improvements
Microsoft is focusing engineering resources on improving Windows 11's performance and reliability, a process described internally as "swarming." This initiative aims to address reported issues such as persistent bugs, performance concerns, and challenges related to user experience.
Pavan Davuluri, president of Windows and Devices, stated the company's commitment to "improving system performance, reliability, and the overall experience of Windows" based on community feedback. Expected enhancements include resolving dark mode functionalities and updating interface elements. While driver stability has seen improvements and occurrences of the Blue Screen of Death (BSOD) have decreased, some users continue to report performance issues with File Explorer.
Recent Issues and User Feedback
Recent Windows 11 updates have introduced new issues. In early 2024, emergency out-of-band updates were issued to resolve shutdown problems for some Enterprise and IoT edition PCs, as well as addressing crashes in OneDrive and Dropbox. Separately, some business PCs reportedly failed to boot after installing a January update due to incomplete prior updates.
User feedback has highlighted concerns regarding the promotion of Microsoft Edge and Bing through pop-up notifications and redirects following Windows Updates. The operating system has also been noted for persistent prompts related to OneDrive cloud storage and increased requirements for a Microsoft account. The Windows 11 Recall feature, designed to capture screen snapshots, has generated discussion regarding privacy implications and OS telemetry data.
Microsoft CEO Satya Nadella has previously articulated a goal to transition users "from needing Windows to choosing Windows, to loving Windows."
Xbox and Gaming Initiatives
Microsoft is preparing an upcoming Xbox Developer Direct stream to showcase new games, with anticipated titles including Forza Horizon 6, Fable, Beast of Reincarnation, and Double Fine's Kiln. Forza Horizon 6 is expected for release in May, while Fable and Gears of War: E-Day are targeting the second half of the current year. Microsoft aims to release new Forza, Gears, Halo, and Fable titles in 2026, coinciding with Xbox's 25th anniversary.
Xbox Cloud Gaming and Compatibility
In other gaming news, Microsoft is nearing the launch of an ad-supported free streaming option for Xbox Cloud Gaming, offering one hour of playtime per session. The Xbox app is now fully compatible with Arm-based Windows 11 PCs, and over 85% of the Xbox Game Pass catalog is compatible via Microsoft's Prism emulation technology.
Other Corporate Developments
Plans for 15 Microsoft data centers in Mount Pleasant, Wisconsin, on land previously associated with Foxconn, have advanced through local village approval. Furthermore, Microsoft will sponsor the Mercedes-AMG F1 team starting with the 2026 season, providing technologies for race operations and featuring its logo on cars and racing suits.