Sources say Microsoft is canceling Surface headsets and other products to focus more on AI

On September 22nd, sources revealed that Microsoft has decided to cancel some experimental products, such as the Surface Headphones, to focus more on the field of artificial intelligence.

It is understood that Microsoft first introduced the Surface Headphones in 2018 and subsequently launched an improved version in 2020. However, the new Surface Headphones, which were originally planned to be updated every two years, were not showcased at the Autumn New Product Launch in 2022, attracting attention from the tech media.

The Surface Headphones had received unanimous praise from tech media, especially for their sound quality and dial noise-cancellation feature. However, facing competition from similar products from brands like Apple, Bose, and Sony, the Surface Headphones series lost its shine, and the product has been marked as “out of stock” on Microsoft's official website.

Microsoft’s decision is not just about canceling a single product; this latest move indicates a shift in the company’s strategy. To support investments in the field of artificial intelligence, many teams within Microsoft are cutting budgets and reducing staff. According to informed sources, even in the current severe economic situation, Microsoft's Windows business has been affected and has not achieved internal growth targets.

Moreover, after Microsoft's Surface consumer division scaled down its operations and discontinued some products, Panos Panay, a long-time executive in charge of the Surface department, left Microsoft to take charge of Amazon’s consumer hardware business. Panos Panay, who had worked at Microsoft for nearly 20 years and was one of the founders of the Surface tablet business, caused a lot of surprises and shocks with his departure.