The Netflix and Warner Bros. deal might be great for shareholders, but not for anyone else

Netflix’s $82.7 billion acquisition of Warner Bros. is, in many ways, the last thing a weakened Hollywood needs right now. The industry is still recovering from the COVID-19 pandemic, where theaters were forced to close and audiences became even more comfortable with streaming films at home. The WGA and SAG-AFTRA strikes in 2023, which were driven by legitimate concerns around studio interest in generative AI, delayed production and promotion of many film and TV projects. And the rise of streaming content pushed many media companies towards taking on debt and unwise mergers (see: Warner Bros. Discovery), which led to higher subscription costs, layoffs and production belt-tightening.

How can a troubled media company survive today? The answer seems to be further consolidation. Amazon’s $8.45 billion MGM takeover in 2022 heralded future deals, like Skydance’s $8 billion acquisition of Paramount . But Netflix’s WB deal goes even further: It could fundamentally reshape the media industry as we know it, from theatrical movie-going to the existence of physical media.

What will the Netflix and Warner Bros. deal include? 

After next year’s already-announced separation of Warner Bros. and Discovery, Netflix says it plans to acquire all of Warner Bros. remaining assets — including its film and TV studios, HBO Max and HBO — for $82.7 billion. According to Game Developer, representatives also say Warner Bros. Games, which includes Mortal Kombat developers NetherRealm, will also be part of the deal. 

Will the Netflix and Warner Bros. deal be approved by regulators?

Even before the deal was formally announced, it was clear that whoever bought WB would be facing government opposition from every side. Yesterday, Paramount sent WB a letter questioning the “fairness and adequacy” of the acquisition bidding process (which also included Comcast as a potential buyer). Afterwards, the New York Post reported that Paramount CEO David Ellison, son of the Trump-boosting Oracle CEO Larry Ellison, met with administration officials to make his case for buying Netflix. As of this morning, the Trump administration views the Netflix/WB deal with “heavy skepticism,” an official tells CNBC.

On the other side of the aisle, Senator Elizabeth Warren (D-MA) has called the Netflix/WB deal an “anti-monopoly nightmare.” She added, “A Netflix-Warner Bros. would create one massive media giant with control of close to half of the streaming market. It could force you into higher prices, fewer choices over what and how you watch, and may put American workers at risk.”

At this point, it’s too early to tell if the Netflix/WB deal will make it past regulators, but it’s clear that both companies should prepare for a rocky approval process.

What does the Netflix and Warner Bros. deal mean for streaming video? 

According to data from JustWatch, a combined Netflix and HBO would account for 33 percent of the US streaming video market, putting it ahead of Prime Video’s 21 percent share. As for how the two media companies would co-exist, Netflix says it will “maintain Warner Bros. current businesses,” which includes HBO Max and HBO, theatrical releases for films and well as movie and TV studio operations. 

JustWatch streaming video market stats.

JustWatch

“We think it’s too early to talk specifics about how we’re going to tailor this offering for consumers,” Netflix co-CEO Greg Peters said in an investor call this morning, when asked if HBO would remain a separate service. “Needless to say, we think the HBO brand is very powerful, and would constitute part of our plan for consumers. That then gives us a lot of options to figure out how to package things to offer the best options for consumers.”

At the very least, we can expect increased prices across the board for HBO and Netflix. There’s also potential for the company to offer combination subscriptions, similar to how Disney juggles Disney+, Hulu and ESPN. 

What does the Netflix and Warner Bros. deal mean for theaters?

In short, a combined Netflix/WB wouldn’t be great for theaters. Previous mergers, like Disney and Fox’s union, led to fewer theatrical releases, not more. Since its transformation into a streaming-first company, Netflix has also been primarily focused on increasing subscriptions and engagement, with theatrical releases of its original content treated as an afterthought. 

“We’ve released about 30 films into theaters this year, so it’s not like we have opposition to theatrical release,” Netflix Co-CEO Ted Sarandos said in the investor call (without specifying how short some of those theatrical releases were). “It’s the longer windows that aren’t consumer friendly. Life cycle that starts in the movie theater, we’ll continue that. Over time, the windows will evolve to be much more consumer friendly, to meet the audience where we are.”

He added: “All things that are going to theaters through WB will continue to do so. Our primary goal is to bring first-run movies to consumers, and we intend to continue with that.” In an April interview at the Time100 Summit, Sarandos also famously called the theatrical model “outdated,” since most people in the US can’t easily walk to a multiplex. 

Cinema United, a trade group representing over 30,000 movie theater screens in the US, is unsurprisingly against the entire deal. “The proposed acquisition of Warner Bros. by Netflix poses an unprecedented threat to the global exhibition business. The negative impact of this acquisition will impact theatres from the biggest circuits to one-screen independents in small towns in the United States and around the world,” Cinema United President and CEO Michael O’Leary said in a statement. 

“Cinema United stands ready to support industry changes that lead to increased movie production and give consumers more opportunities to enjoy a day at the local theatre,” he added. “But Netflix’s stated business model does not support theatrical exhibition. In fact, it is the opposite. Regulators must look closely at the specifics of this proposed transaction and understand the negative impact it will have on consumers, exhibition and the entertainment industry.”

What do artists think of the Netflix and WB deal?

Writers, directors and producers are already having a tough time getting projects off the ground, so having one less place to pitch isn’t going to help. There are also a handful of artists, including former WB darling Christopher Nolan, who have refused to work with Netflix entirely. 

“The end goal of these consolidations is to limit choices in entertainment to a select handful of providers, so they can capture our whole attention, and thus our every available dollar,” C. Robert Cargill, the screenwriter behind Doctor Strange and The Black Phone, said in a statement to Engadget. “The result will be a gutting of diversity and fresh voices in the industry, sending thousands, if not tens of thousands, of people back to their home towns to start their lives over, as there simply isn’t a place for them in Hollywood any more, while homogenizing film and television into the “content” word we all grumble about hearing.”

“WB has made so many daring choices this year, with executives taking big risks that made real cultural and financial impacts at the box office,” he added. “And HBO, constant name changes be damned, is still making some of the best television there is, bar none. Will those creative environments survive the merger, or will many of those brilliant execs be sent packing along with the writers, directors, and crews?” 

“In short, it’s a very scary and heartbreaking time to be a filmmaker. No shade on Netflix and the people that work there; it’s just that less choice in entertainment always makes for fewer winners and more people on the outside looking in.”

What about physical media?

Other than noting that Netflix used to be a DVD-by-mail company, there was no mention of physical media on the acquisition’s press release or investor call. That’s not too surprising, as physical releases have always been an afterthought for Netflix. A few of its films, like Roma and Frances Ha, are available as discs through the Criterion Collection, and some shows like Stranger Things are also on DVD and Blu-ray. 

Netflix claims it’ll continue to run WB’s businesses as usual if the deal goes through, which should include physical media, but those sorts of pre-acquisition promises rarely last for long. WB’s home video business isn’t entirely its own, either: In 2020, it formed the joint venture Studio Distribution Services with Universal, which also handles physical media distribution for Sony Pictures, PBS and Neon.

Given the slowing demand for physical media, it’s likely one of the first things a combined Netflix/WB would eventually drop. But there’s also been a resurgence of premium physical releases from distributors like Arrow Video, so there’s a chance Netflix may want to keep it around for special releases.

Steve Dent contributed to this report.

This article originally appeared on Engadget at https://www.engadget.com/entertainment/streaming/the-netflix-and-warner-bros-deal-might-be-great-for-shareholders-but-not-for-anyone-else-183000247.html?src=rss 

New Philo subscribers can get their first month of access for $25

Philo has a decent discount for newcomers who are looking for a solid bundle of live TV channels and on-demand streaming services. New subscribers can get their first month of access to the Core plan for $25. That’s a discount of $8.

For your 25 bucks, you’ll gain access to more than 70 channels, including AMC, BBC America, Comedy Central, Food Network, Hallmark Channel, several MTV stations, Nickelodeon and TLC. AMC+, HBO Max basic with ads and Discovery+ are included at no extra cost.

Philo is our pick for the best cheap live TV streaming service. Having unlimited DVR is welcome and recordings expire after one year, which is three months longer than many competing platforms. There’s no contract either, so you can cancel at any time.

The platform also offers more than 110 free channels, but unfortunately there are no local channels and there’s not much in the way of sports programming. Other notable channels, such as Bravo and Freeform are missing too. However, if the lineup of channels and streaming services covers all your needs, Philo is a solid streaming option, especially with the discount.

Follow @EngadgetDeals on X for the latest tech deals and buying advice.

This article originally appeared on Engadget at https://www.engadget.com/deals/new-philo-subscribers-can-get-their-first-month-of-access-for-25-171033925.html?src=rss 

India is reportedly considering another draconian smartphone surveillance plan

You know what they say: If at first you don’t succeed at mass government surveillance, try, try again. Only two days after India backpedaled on its plan to force smartphone makers to preinstall a state-run “cybersecurity” app, Reuters reports that the country is back at it. It’s said to be considering a telecom industry proposal with another draconian requirement. This one would require smartphone makers to enable always-on satellite-based location tracking (Assisted GPS).

The measure would require location services to remain on at all times, with no option to switch them off. The telecom industry also wants phone makers to disable notifications that alert users when their carriers have accessed their location. According to Reuters, India’s home ministry was set to meet with smartphone industry executives on Friday, but the meeting was postponed.

India’s Prime Minister Narendra Modi appears on a screen to deliver a speech remotely as other leaders attend the 22nd ASEAN – India Summit during the 47th Association of Southeast Asian Nations (ASEAN) Summit in Kuala Lumpur on October 26, 2025. (Photo by Rafiq Maqbool / POOL / AFP) (Photo by RAFIQ MAQBOOL/POOL/AFP via Getty Images)

RAFIQ MAQBOOL via Getty Images

Predictably, proponents claim the plan is about helping law enforcement keep you safe from the bad guys. (See also: Orwell’s Nineteen Eighty-Four.) The administration of Prime Minister Narendra Modi has long been concerned that law enforcement agencies can’t obtain precise enough locations during investigations. Cell tower data alone can be off by several meters. And hey, what’s the privacy of 1.4 billion people next to tracking criminals with an extra 10 ft. or so of accuracy, right?

Apple, Google and Samsung are said to oppose the move and have urged the Modi government to reject it. The lobbying group India Cellular & Electronics Association (ICEA), which represents them, reportedly wrote in a confidential letter this summer that the proposal has no precedent anywhere in the world. The group’s letter described the measure as a “regulatory overreach,” which is probably putting it mildly. They warned that it could compromise military personnel, judges, corporate executives and journalists.

In a statement sent to Engadget, the Electronic Frontier Foundation (EFF) sounded the alarm on the proposal. “Requiring phones to have A-GPS enabled all the time would be a horrifying decision by the Indian government with significant impacts on the privacy of everyone in the country,” EFF Senior Staff Technologist Cooper Quintin said. “With this change, the phone company and law enforcement get your exact location at any time, potentially even without legal due process.”

This article originally appeared on Engadget at https://www.engadget.com/cybersecurity/india-is-reportedly-considering-another-draconian-smartphone-surveillance-plan-173500327.html?src=rss 

Meta cuts deals with several news publishers for AI use

Meta has cut several deals with news publishers to help provide real-time data for its AI chatbot services, as reported by Axios. The commercial agreements will allow its Meta AI chatbots to better answer user queries about news and current events.

These are multiyear deals where publishers will be compensated for the use of their content, but we don’t have any monetary specifics. The contracts do stipulate that Meta’s chatbots will link out to articles when answering news queries, potentially offering a slight traffic boost to publishers.

The news partners include USA Today, People, Le Monde and CNN. However, there are also a whole lot of conservative outlets included in today’s announcement, such as Fox News, The Daily Caller and Washington Examiner. It’s a good thing Meta’s AI will provide the aforementioned links, just in case a chatbot says something crazy about whatever nonsense culture war topic is going on that day.

Meta has announced that this is just a first step and that it will be adding more news partners to cover more topics in the future. This is an interesting move because Meta has long-been averse to paying news companies for access to content. It stopped paying US publishers for access to news in 2022 and the Facebook news tab went away entirely last year.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/meta-cuts-deals-with-several-news-publishers-for-ai-use-163404107.html?src=rss 

X hit with $140 million fine from the EU

The European Commission has fined Elon Musk’s X €120 million (around $140 million) for breaching its transparency rules under the Digital Services Act. The European Union’s executive arm announced that it was investigating the social media company’s blue checkmarking verification system — first introduced when it was still known as Twitter — last year, along with other alleged DSA violations. Today’s verdict concerns the “deceptive design” of the checkmark, as well as “the lack of transparency of [X’s] advertising repository, and the failure to provide access to public data for researchers.”

The Commission’s issue with X’s verification system is that where blue checkmarks were once something that Twitter that Twitter vetted, they can now be bough by anyone. According to the EU, this puts users at risk of scams and impersonation fraud, as they can’t tell if the accounts they’re engaging with are authentic. “While the DSA does not mandate user verification, it clearly prohibits online platforms from falsely claiming that users have been verified, when no such verification took place,” it wrote in a statement.

The EU has also ruled that X’s advertisement repository employs “design features and access barriers” that make it difficult for good faith actors and the general public to determine the source of online ads and spot scams or threat campaigns. It says that X fails to provide information pertaining to both the content of an ad and the entity paying for its placement.

The third alleged infringement concerns the public data that companies are required by the DSA to make available to qualifying researchers. The European Commission claims that X’s practices in this area are unnecessarily prohibitive, therefore “effectively undermining research into several systemic risks in the European Union.”

X has 60 working days to respond to the EU’s non-compliance decision — the first of its nature — on blue checkmarks, and 90 days to submit an “action plan” of how it will address the alleged breaches relating to its advertising repository and access to public data. Failure to comply could result in financial penalties.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/x-hit-with-140-million-fine-from-the-eu-161259324.html?src=rss 

Where the hell is Samsung’s Ballie robot?

Another CES is nearly upon us, another year where we’ll see new gadgets aplenty from giant companies and tiny ones you’ve never heard of. And the not-so-secret secret of CES is that many of these things never make it to market — but usually it isn’t things companies like Samsung show off. But here we are, nearly six years since Samsung first showed off its Ballie personal robot and it is nowhere to be found.

For those who may not recall, Ballie is an adorable circular robot that can putter around your house and project things onto the floor and wall. It’s kind of a virtual assistant on the go. Samsung first revealed this tiny robot at CES 2020, but it was more of a prototype than something anyone expected to purchase. And then there was a global pandemic and we all sort of forgot about weird ball-shaped robots for a few. But Samsung triumphantly unveiled a larger and more refined Ballie at CES 2024, saying it would be on sale that year! 

Well, that didn’t happen, but a year later Ballie was back at CES again. Samsung promised it would go on sale in 2025, and followed up with a press release this past April saying it was on track for a summer launch in Korea and the US. As far as I can tell, that’s the last we’ve heard of it. 

But with CES looming again, I can’t help but feel like Samsung will roll Ballie out once more, trying to sell the dream of a cute robotic companion who just gets you. I spent some time watching Ballie do its thing in a carefully controlled demo at CES 2024, and I can’t say I was overwhelmed by its purported usefulness or thought there’d be much of a market for this thing. I now can’t help but wonder if Samsung has data backs up my intuition. If this thing was going to sell like gangbusters, it likely wouldn’t be subjected to such a long and public gestation period. 

It reminds me a little of one of my favorite Samsung gaffes, the Galaxy Home smart speaker. It was announced at a time when Apple and Google were challenging Sonos and Amazon with voice-activated speakers of their own, moving Siri or the Google Assistant from your phone to a more omnipresent place in your home. 

The first rumor of the Galaxy Home happened way back in 2017, and the speaker was officially revealed and briefly shown off by Samsung in August of 2018. My immediate reaction was that this product made very little sense for both Samsung and potential customers — Bibxy sucked, and there were plenty of speakers with better voice assistants. Apparently, Samsung agreed. After multiple years of vague commitments and references to the Galaxy Home, Samsung just… stopped talking about it. Oddly enough, a Galaxy Home Mini speaker was briefly released in South Korea, part of a promotion for people who pre-ordered the Galaxy S20. But I don’t think you could ever just walk into a store and buy one, and the larger Galaxy Home never materialized at all. 

Ballie isn’t quite the abandonware situation that the Galaxy Home was, at least not yet. After all, it’s only been about eight months since Samsung dropped that press release claiming it would arrive soon. The company has definitely pushed Ballie in a more public way than the Galaxy Home, making it a little harder to just drop entirely. Maybe we’ll see a revamped Ballie with even more weird tricks next month, or maybe we’ll just get another vague promise that it’ll arrive in 2026. After failing to deliver two years in a row, though, I’m not going to expect Ballie to show up as a real product until I can punch in my credit card and pre-order it… not that I’d do that anyway. Ballie needs to show that it’s a lot more than a cute rolling robot before Samsung gets my cash. 

This article originally appeared on Engadget at https://www.engadget.com/ai/where-the-hell-is-samsungs-ballie-robot-151112829.html?src=rss 

The New York Times and Chicago Tribune sue Perplexity over alleged copyright infringement

The New York Times and the Chicago Tribune have filed separate lawsuits against Perplexity over alleged copyright infringement. The Times said it had sent Perplexity several cease-and-desist demands to stop using its content until the two reached an agreement, but the AI company persisted in doing so. 

In the lawsuit [PDF], the Times accused Perplexity of infringing on its copyrights at two main stages. First, by scraping its website (including in real time) to train AI models and feed content into the likes of the Claude chatbot and Comet browser. Second, in the output of Perplexity’s products, with the Times accusing the company’s generative AI products of often reproducing its articles verbatim. The Times also says Perplexity damaged its brand by falsely attributing completely fabricated information (aka hallucinations) to the newspaper.

The Chicago Tribune also filed a lawsuit against Perplexity for similar reasons. “Perplexity’s genAI products generate outputs that are identical or substantially similar to the Chicago Tribune’s content,” the newspaper claimed in its suit. “Upon information and belief, Perplexity has unlawfully copied millions of copyrighted Chicago Tribune stories, videos, images and other works to power its products and tools.”

These lawsuits are the latest in dozens of legal cases involving copyright holders and AI companies in the US. The Times, for instance, previously sued OpenAI and Microsoft. It accused the companies of training their large language models on millions of its articles without permission. That case is ongoing.

Copyright holders have licensed their content to AI companies in some cases, though. OpenAI has struck multiple deals with media companies. The Times and Amazon reached an agreement this year that’s said to be worth as much as $25 million per year to the media company.

This article originally appeared on Engadget at https://www.engadget.com/ai/the-new-york-times-and-chicago-tribune-sue-perplexity-over-alleged-copyright-infringement-153656431.html?src=rss 

Engadget Podcast: WTF is up with RAM? (With Will Smith from The Tech Pod)

RAM prices have gone wild, mostly thanks to AI. In this episode, Devindra chats with Will Smith (Brad and Will Made a Tech Pod) about the state of the RAM industry, as well as other hardware we expect to get more expensive. (SSD prices are definitely creeping up too!). Also, we discuss Meta poaching Alan Dye, one of Apple’s design executives, and what this could mean for Meta’s upcoming devices. And yes, whatever they have next will likely revolve around AI.

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Topics

Mark Zuckerberg, CEO of Meta, plans deep cuts to his company’s metaverse development – 1:09

Longtime Apple UI designer Alan Dye to join Meta’s AI division – 7:08

US DOT cuts fuel efficiency standards, doubles down on gas cars – 25:40

Waymo autonomous cars recently started driving more aggressively – 31:30

Amazon halts its anime dub beta because it sounded terrible – 38:00

WTF, RAM?? Will Smith joins to talk about why RAM prices are spiraling upward – 44:05

Around Engadget: Metroid Prime 4 is a return to form after 18 years on ice – 1:04:42

Working on – 1:07:36

Pop culture picks – 1:08:32

Credits

Host: Devindra Hardawar
Guest: Will Smith
Producer: Ben Ellman
Music: Dale North and Terrence O’Brien

This article originally appeared on Engadget at https://www.engadget.com/social-media/engadget-podcast-wtf-is-up-with-ram-with-will-smith-from-the-tech-pod-141442002.html?src=rss 

Splitgate: Arena Reloaded tries to fix what Splitgate 2 broke

Portal shooter Splitgate 2 is coming back with a new name and rebuilt experience after being pulled back to beta earlier this year, developer 1047 Games announced. The free-to-play Splitgate: Arena Reloaded will relaunch on December 17th across platforms including Xbox Series X/S, PlayStation 5 and PC. 

“After months of community feedback, testing and rebuilding the entire experience, this is Splitgate refocused on what made it special in the first place: classic arena combat without factions, abilities, or extra noise,” the developer shared in a blog post, along with a gameplay video. 

Splitgate 2 originally launched in June, but 1047 Games pulled it back to beta after deciding that the release had been rushed. For the new version, the company said, “we took the best of Splitgate 1 and Splitgate 2” and cut the parts that didn’t fit, while refining the ones that did. “in the process, we not only rebuilt the game, we reconnected with the magic of the genre that built this studio in the first place: a return to the Arena.” 

Here are some key changes made:

Removed Splitgate 2’s factions, abilities, and select equipment so the focus is back on classic arena combat without the extra noise.

Rebuilt progression from the ground up so your time in game feels rewarding, with weapon and character cosmetics you can earn simply by playing.

We’ve added a true Classic Arena mode with even starts and new map pickups, recapturing the feel of the original.

Fine tuned combat to better match expectations for a modern arena shooter, with more meaningful gunfights and fewer “what just happened” moments.

Completely overhauled the ranked system so your rank reflects your actual skill for players who love to climb and compete.

Added key systems you have been asking for: Mode Select, Player Stats, Ranked Leaderboards, and Account Levels.

Introduced five brand new maps and six fully reworked arenas, bringing the total map pool to 20.

Added three new LMG primary weapons and the iconic Power Weapon, the Railgun.

1047 Games was savaged earlier this year by Splitgate players after co-founder Ian Proulx wore a hat at Summer Games Fest stating “Make FPS Great Again.” Later, he posted to the studio’s X account on Splitgate 2’s release date that he was “not here to apologize” and that the hat was “not a political statement,” finally admitting that it was all basically a publicity stunt.

This article originally appeared on Engadget at https://www.engadget.com/gaming/splitgate-arena-reloaded-tries-to-fix-what-splitgate-2-broke-130027714.html?src=rss 

Microsoft’s Copilot+ AI PC plan fizzled, but it still served a purpose

Microsoft’s Copilot+ initiative launched last year with a clear goal: To produce capable laptops for people eagerly anticipating AI-powered features. Read that sentence again, and it’s glaringly obvious that Microsoft’s plan was flawed from the start. Most consumers aren’t nearly as hyped for AI features as the companies eager to foist artificial intelligence upon us. And those features aren’t exactly compelling, either. Microsoft’s Recall — which snaps screenshots of your PC to create a database of everything you’ve done– was dogged by privacy concerns from the start. And to be honest, I haven’t found its ability to remember the files and websites I’ve opened to be that useful.

Without any sort of killer AI app, most consumers weren’t going to pay a premium for Copilot+ systems either. Not in this precarious economy, anyway. So it wasn’t a huge surprise to see sales of Copilot+ systems going practically nowhere over the last year. In the third quarter of 2024, they accounted for less than 10 percent of systems shipped, according to data from Mercury Research (via Tom’s Hardware). The research firm IDC (via PCWorld) also found that Copilot+ systems made up just 2.3 percent of Windows machines sold in the first quarter of 2025 (and a mere 1.9 percent of the entire PC market).

Instead of continuing to promote Copilot+, Microsoft now wants to “make every Windows 11 computer an AI PC“. The new “Hey Copilot” voice commands and Copilot Vision, a feature that lets the AI assistant see what’s on your screen, are both cloud-powered. That means you won’t need the beefy 40 TOPS neural processing units (NPU) found on Copilot+ systems to use them. Microsoft spent the past few years touting NPUs as the gateway to useful AI features, like Recall and Windows Studio webcam effects, but only one of its new AI capabilities actually requires an NPU. (And even that is just a slight update to Click to Do, allowing you to send Zoom invitations by right-clicking on e-mail addresses.)

It’s easy to view the whole Copilot+ initiative as a cynical way to ramp up AI hype and push people towards expensive new laptops, especially as the October 14 Windows 10 end of support date loomed. But it also led to some genuinely useful changes: Microsoft made 16GB of RAM a standard for Copilot+ systems, along with 256GB of storage and the aforementioned 40 TOPS NPUs. The launch of Copilot was also the kick in the pants Microsoft needed to revamp Windows for mobile Arm processors. I never thought I’d love a Surface with a Snapdragon chip, but the improved Arm support on the Surface Pro and this year’s smaller model finally won me over.

The Dell 16 Premium sitting on a ledge.

I wouldn’t call the Copilot+ program a huge swing, but it’s still the sort of industry-wide cat herding that’s rare to see in the PC space. Microsoft couldn’t just snap its fingers and shift all PCs to efficient mobile chips with powerful NPUs, like Apple did with its own jump to M-series chips years ago. Microsoft had to wait for new NPU-equipped hardware from Qualcomm (and eventually Intel and AMD). It had to finally fix the Windows on Arm problem. And it also had to double-down on AI features that felt truly transformative. It’s just a shame that consumers didn’t seem to care.

Microsoft said that Copilot+ systems accounted for 15 percent of premium PCs sold during last year’s holiday season, but the company hasn’t released any new sales figures since then. “This is the fastest adoption I’ve seen of a new category of hardware, and we’ve done it faster than the normal generational shift of silicon,” James Howell, Microsoft’s VP of Windows marketing, said in a conversation with Engadget. “Copilot+ PCs continue to be a transition that we are pushing for and prioritizing. But I can’t give you the exact numbers beyond that… Just for the last two or three months, we’ve been doing pretty well with year-on-year growth in the Windows business.”

Surface Pro Copilot+

Devindra Hardawar for Engadget

While Microsoft ultimately doesn’t have much to show for the Copilot+ initiative, the steady progression of hardware will lead to AI PCs dominating over the next five years. The research firm Omdia predicts that AI PCs will account for 55 percent of computers shipped in all of 2026, up from 42.5 percent of systems in Q3 2025. By 2029, Omdia predicts AI PCs will make up 75 percent of all systems shipped, giving Windows 80 percent of the AI PC market.  

Omdia AI PC shipment predictions

Omdia

“It’s important to note that this steep adoption curve [for AI PCs] is driven more by the product roadmaps of the PC market, rather than consumers and businesses seeking PCs specifically for AI,” according to Omdia research analyst Kieren Jessop. “For businesses, and consumers especially, AI-capable PC adoption is more a function of a customer going to purchase a device and that device just so happens to have an NPU.”

Microsoft was basically right: AI PCs are the future. But it turns out the AI features people actually want to use — like ChatGPT, Sora and Microsoft’s own Copilot — are mostly powered by the cloud, making onboard NPUs superfluous. That won’t be true forever. There are tangible security, speed and convenience benefits for onboard AI processing, like transcribing sensitive audio instead of sending it to the cloud. But for now, those AI workloads are relatively niche, and they’re not enough to make the Copilot+ a true success by any measure.

This article originally appeared on Engadget at https://www.engadget.com/computing/laptops/microsofts-copilot-ai-pc-plan-fizzled-but-it-still-served-a-purpose-130000239.html?src=rss 

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