Comment by bitwize

Microsoft is in a pickle.

Linux and open source have made "selling operating systems" nearly as preposterous as it was back in the mainframe era when they were getting started. So it's gotten very hard to generate revenue directly from Windows. Not even Apple is in the business of selling an OS—they sell hardware, and the OS comes as part of the package. Microsoft has kept good will amongst OEMs by keeping Windows license prices for hardware manufacturers low to nonexistent—were they to actually try making money through the OEM channel by charging a more reasonable price per license, the OEMs would find a way to jump ship to Linux (perhaps ChromeOS). This has already happened during the "netbook era" until Microsoft intervened with Windows 7 Starter Edition.

The pivot for Windows has thus been to find ways for Windows to generate revenue indirectly—by funneling users into other Microsoft products and services, particularly cloud and AI in 2026. But this approach is creating the exact user-hostility problems people are complaining about. Without the ability to generate revenue directly, nor the ability to generate revenue indirectly through cloud services, Windows becomes a cost center rather than a profit center.

So no, I don't see them going the Windows Lite route at all. If they cut out the fat, they cut off Windows's revenue stream and its reason for existing in the first place.