Microsoft Cancels Surface Headphones, Cuts Teams to Boost AI Investments

Microsoft is canceling experimental products like the Surface headphones to focus more on AI investments.
The Surface Headphones launched in 2018 and 2020, but a new version was missing from Microsoft's fall 2022 device event.
Microsoft is cutting budgets and laying off teams across the company, even long-term groups, to fund increased AI spending.
Even Microsoft Windows has faced cuts despite not meeting internal growth targets amid tough economic conditions.
Panos Panay, longtime Microsoft exec who created Surface tablets, left to run Amazon consumer hardware just before the recent Surface launch event.

businessinsider.com

Relevant topic timeline:

9/1/2023

Everything we're expecting at Microsoft's Surface and AI September event

Microsoft is expected to unveil new hardware products, including two-in-one models, laptops, and accessories, at its upcoming "special event" on September 21, along with AI-powered features and services, including previously announced AI innovations and potential updates to the Surface Laptop Studio, Surface Laptop Go, Surface Go tablets, and Surface Pro. The event may also include announcements about new for-Surface accessories and software updates, such as third-party plugins for Bing Chat and AI integrations across Windows 11 applications.

9/10/2023

Microsoft ends support for troubled first-gen Surface Duo after just 3 years

Microsoft has ended support for the original Surface Duo, with the device no longer receiving OS or security updates after its three-year period expired on September 10, 2023, despite gaining a cult following among homebrew software developers.

9/15/2023

Microsoft Teases New Surface Hardware and AI Features at Private Event

Microsoft is expected to release new Surface products and unveil AI-powered features and services at its September 21 event, including the Surface Laptop Studio 2, Surface Laptop Go 3, Surface Go 4, and possibly the Surface Pro 10, along with updates to its software.

9/21/2023

Microsoft Trims Surface Lineup, Cancels Experimental Devices as Panay Departs

Microsoft has cut several niche or experimental Surface hardware products from its lineup, including the Surface Headphones and Surface Studio, as part of its reduction in device portfolio, which is one of the reasons for Panos Panay's sudden departure from the company.

9/26/2023

Apple Reportedly Cancels Plans for Budget AR Headset, Aiming for High-End Model First

Apple has reportedly canceled plans to produce a lower-cost version of the Apple Vision Pro headset, potentially affecting shipment growth in 2025, but a second-generation version is expected to go into production by the first half of 2027.

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Posted 9/21/2023, 7:15:00 PM