Microsoft's latest round of layoffs and game studio shakeups reveal deep cracks in the XBOX business, as years of unprofitability and missed expectations force the company into tough decisions. Are industry icons like Game Pass and big-name studios on borrowed time? Also, Paul's made major progress on the Windows 11 Field Guide updates! Plus, a desktop and mobile web browser that now blocks YouTube ads by default.

Layoffs

• Microsoft announces 4800 layoffs, 3200 at XBOX
• Analysis: What Sharma said and didn't say. Many interesting details revealed here. Many questions unanswered
• Great outcomes for four studios, id Software reportedly laid off half its staff
• Interesting alternative analysis: The Game Pass thesis, XBOX can't do everything

Windows

• Four new builds yesterday, one major new feature: Cloud restore
• Microsoft Edge is adding support for Google account sign-ins
• Opera One adds clipboard attack prevention
• Google and Samsung have announced new hardware launches, both with new foldables on the way - Apple's first foldable expected in January

AI

• Microsoft is reportedly transitioning to its in-house MAI models where possible
• Latest Corey Doctorow book takes on the future of AI and is surprisingly middle-of-the-road. Unlike his last book, he explains how he handles this and has some ideas for doing so yourself

XBOX and gaming

• Gears of War Reloaded, more head to Game Pass
• The oldest rumor in XBOX history is back, with Microsoft working (again, or as always) on a disc-to-digital program in the wake of the Sony PS5+ physical media announcement
• Nintendo to end OG Switch sales, make Switch 2 changes in the EU
• You can play Half-Life 2 in a web browser now

Tips and picks

• Tip of the week: All Mint Mobile Plans Are Now Just $15 Per Month
• App pick of the week: DuckDuckGo browser
• RunAs Radio this week: Implementing Azure Policies with Barbara Forbes
• Brown liquor pick of the week: Shenk's Homestead Sour Mash Whiskey

Hosts: Leo Laporte, Paul Thurrott, and Richard Campbell

Download or subscribe to Windows Weekly at https://twit.tv/shows/windows-weekly

Check out Paul's blog at thurrott.com

The Windows Weekly theme music is courtesy of Carl Franklin.

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Microsoft's July 2026 Patch Tuesday just shattered records with hundreds of bug fixes, and AI is the force behind the surge. Are we witnessing the beginning of a safer Windows, or is this flood of vulnerabilities the new normal? Plus, Tony Redmond's epic book has a new name (was Office 365 for IT Pros) and is now a bundle of four books.

Windows

• Patch Tuesday is here!
• Point in Time Restore, quieter Widgets, Windows Update improvements, Screen tint, and more
• The biggest Patch Tuesday in history, by far: a record 570 fixes for security flaws, and a huge 3X increase from the then-record flaws fixed last month. (Some say the number is 622. Math is hard.) And this is on top of 468 Microsoft Edge/Chromium flaws that were fixed by Google this month too. Yikes.
• Microsoft discusses how it's improving Windows security with AI
• Windows Insider Program: Improved Windows Search is next on the docket, heading out to Experimental this week. Question: When do these things hit stable?
• Microsoft releases Snapdragon X2 versions of its Surface for Business Pro and Laptop models

AI

• Apple sues OpenAI for stealing trade secrets
• Surprised there was no talk of "thermonuclear war"
• OpenAI's response is hilarious, and it is already prepping its first hardware device
• OpenAI just announced the rumored super app, which is a combination of ChatGPT, Work, Codex, and an in-app web browser, which replaces the standalone Atlas web browser. Also, GPT-5.6.
• In keeping with recent history, Anthropic announced its in-app web browser for Claude less than 24 hours later
• Reminder that Microsoft acknowledged that it, too, is working on an AI super app at Build
• Apple releases public betas of its OS 27 releases and, shocker, Siri is really good
• Now Spotify has an AI chatbot so I can tell it how much I hate Spotify

Xbox and gaming

• Obsidian is working on a new Fallout game, duh.
• A quiet time after last week's terribleness

Tips and picks

• Tip of the week: Microsoft 365 for IT Pros (2027 edition) is here!
• App pick of the week: MusicBee
• RunAs Radio this week: Finding Security Vulnerabilities using AI with Sami Laiho
• Brown liquor pick of the week: Sanctuary Single Malt Whisky Reserve Edition

Hosts: Leo Laporte, Paul Thurrott, and Richard Campbell

Download or subscribe to Windows Weekly at https://twit.tv/shows/windows-weekly

Check out Paul's blog at thurrott.com

The Windows Weekly theme music is courtesy of Carl Franklin.

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Behind the headlines about skyrocketing revenues and AI investments, the actual costs and future risks for Microsoft, Google, and Amazon are shrouded in strategic accounting moves. Plus, Paul finished rewriting and adding new chapters to the Windows 11 Field Guide - mostly just clean-up now, and then whatever new monthly features. Lastly, The Document Foundation issues a friendly reminder about the Office 2021 EOL and how that never happens with their software

Microsoft earnings

• Microsoft earnings up 18 percent to $90 billion
• Analysis: Microsoft finds a new way to not account for AI costs

Windows

• Pavan Davuluri says he's "energized" about what's happening to Windows in 2026.
• OK. But what's really happened so far? When will the biggest changes land? And when, if ever, will you address the real enshittification in Windows 11?
• Windows Insider Program: Five new builds - New Taskbar comes to Beta channel
• This leads to questions of timing, and here, WIP is not all that transparent still
• Another antitrust win: Apple to allow Copy and Paste between Windows and iPhone
• AMD revenues up 50 percent to $11.5 billion, but it's all AI datacenter
• Amazon: up 20 percent to $200 billion
• Apple: up 16 percent to $109 billion

AI

• Satya Nadella mentions AI super app again, not clear why anyone cares about this
• Proton Lumo can do data visualization now

Xbox and gaming

• Asha Sharma details the priorities for XBOX in the next year and number 5 will shock you
• XBOX console prices going up in the EU and UK
• Thanks, Caption Obvious: Yes, Backward Compatibility on PC will support Xbox 360 games too
• XBOX plans new FanFest tour dates - there's SO much to celebrate!
• Gears of War: E-Day leads the charge for new Game Pass titles in August
• XBOX Insiders is testing new console features
• XBOX app comes to Hisense and VIDDA TVs
• EA goes private for $55 billion in cash, but also some debt
• Sony has sold 95.3 million PS5s
• Sony responds to concerns about no more discs (with "pffffftttt")

Tips and picks

• Tip of the week: It's done!
• App pick of the week: LibreOffice
• RunAs Radio this week: Ransomware Readiness with Heather Renze
• Brown liquor pick of the week: Frey Ranch Straight Bourbon

Hosts: Leo Laporte, Paul Thurrott, and Richard Campbell

Download or subscribe to Windows Weekly at https://twit.tv/shows/windows-weekly

Check out Paul's blog at thurrott.com

The Windows Weekly theme music is courtesy of Carl Franklin.

Join Club TWiT for Ad-Free Podcasts!
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