2025 proved to be a tumultuous year for Microsoft, filled with notable challenges and criticisms. A significant stumbling block was the tepid migration to Windows 11, despite the official end of support for Windows 10 occurring in October. Additionally, the company’s push towards integrating artificial intelligence into its products met with substantial pushback from users dissatisfied with the current state of Microsoft’s desktop operating system.
Let’s delve into the specific challenges Microsoft faced this year, starting with the key issues surrounding Windows, and then exploring hardware, gaming shortcomings, and other areas where the company faltered—not forgetting to highlight some successes along the way.
Windows 10 Support Ran Out – But No Rush to Upgrade to Windows 11
On October 14, 2025, Microsoft officially ended support for Windows 10 with the deployment of its final update. Interestingly, for the first time, the company offered everyday users the option to sign up for Extended Security Updates (ESU), a privilege traditionally reserved for businesses.
This ESU scheme was priced at $30, or users could avoid charges by syncing their PC settings to OneDrive, thereby receiving an extra year of support for free until October 2026. This late-in-the-game decision allowed many to stay on Windows 10, resulting in a slow migration rate to Windows 11. Compatibility issues with older PCs can also be attributed to this phenomenon, accentuating the sluggish adoption.
While the migration rates will be clearer in 2026 when extended support concludes, it’s worth noting that some Linux distributions reportedly received an influx of Windows defectors following the end of Windows 10 support, alluding to a slow but potentially notable rise of Linux as a viable desktop option.
Microsoft’s AI Push in Windows 11 – How It Backfired
2025 was a significant year for Microsoft’s endeavors to cement artificial intelligence within Windows 11. The company made bold claims about transforming each Windows 11 PC into an AI-powered device utilizing voice input and enhanced capabilities for features like Copilot.
However, this ambitious vision faced backlash from a disillusioned user base that was vocal about their dissatisfaction. Critics pointed out that the focus should instead be on rectifying existing bugs and improving system performance rather than incessantly promoting new AI features.
Despite this discontent, certain AI developments did make positive waves, such as improved searching capabilities within Windows 11 utilizing Copilot+ and potential AI settings that could enhance user experience. Nevertheless, palpable concerns around privacy and security remain prevalent, particularly with the ongoing integration of AI technologies.
Windows 11 Continued to Struggle with Bugs
Beyond AI, Microsoft failed to make significant headway with Windows 11 in 2025. The highly anticipated 25H2 update did bring some improvements, such as a new PC recovery option and a redesigned Start menu, but overall, the update seemed lackluster.
Quality assurance remained a glaring issue, with lingering bugs affecting user experience. The gaming functionality suffered particularly, leading to frustration among gamers who encountered glitches such as odd interface behavior and erratic performance issues. Many users found themselves questioning the reliability of Microsoft’s services, especially as the company pushed forward with AI initiatives.
Gaming Woes with Windows 11 Amidst Increased Competition
The gaming landscape presented further challenges for Microsoft, particularly in light of Windows 11’s ongoing issues. Gamers faced connectivity and performance glitches right when competition heightened, particularly from Valve’s SteamOS.
As Valve announced the upcoming Steam Machine designed to facilitate living room gaming experiences, dissatisfaction amongst Windows 11 users could potentially pull gamers towards competing platforms that offer a more seamless gaming experience.
Xbox Game Pass Price Hike Sparks User Discontent
In September 2025, Microsoft announced a significant price hike for the Xbox Game Pass Ultimate tier, raising it to $29.99 per month. This move drew widespread criticism from gamers, sparking mass cancellations of subscriptions. Reports indicated that Microsoft’s systems experienced crashes due to the influx of users seeking to opt out.
While Microsoft justified this increase by highlighting additional value provided, many users felt their concerns were ignored, leading to a concerning exodus from the platform.
Xbox Console Sales Experience a Sharp Decline
As the year drew to a close, Xbox console sales figures revealed a staggering 70% year-on-year drop, positioning Microsoft at a disadvantage compared to its rival Sony, whose PS5 sales only dipped by 40%. This downturn followed previously announced price hikes for Xbox hardware, which further alienated consumers.
Surface Hardware Fails to Recapture Previous Success
Microsoft aimed to replicate last year’s success with its Surface hardware line but fell short. The Surface Pro 12 did not excite consumers as its predecessor did, primarily due to its perceived downgrades despite a reduced price.
The Surface Laptop 13-inch, while still a strong contender, was unable to outperform Apple’s MacBook Air 13-inch in terms of performance or value, marking a disappointing year for the Surface lineup.
Conclusion
Overall, Microsoft’s 2025 performance is characterized by significant challenges, ranging from job cuts and user dissatisfaction with AI integrations, to ongoing bugs in Windows 11 and frustration surrounding Xbox Game Pass price hikes and console sales declines. Despite these setbacks, the company’s financials showed positive growth fueled by increased gaming revenue, predominantly from the Game Pass.
As Microsoft steers its focus towards profitability and marketing AI, it risks neglecting the day-to-day concerns of its user base. The company’s future may depend on balancing shareholder interests with genuine consumer feedback and addressing the systemic issues plaguing its flagship products.
Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds. Make sure to click the Follow button!
And of course you can also follow TechRadar on TikTok for news, reviews, unboxings in video form, and get regular updates from us on WhatsApp too.
Image Credit: www.techradar.com
