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Remember that big leak about Microsoft having begun developing a version of Windows that was built around AI, before eventually abandoning the project? Well, it's surfaced again, this time with some interesting new information on just how focused Microsoft was on Copilot, which I think is quite telling — or indeed worrying for those who believe Microsoft might be backtracking on AI somehow.

Windows Latest has gone back over the leak (which was first reported by our sister site Windows Central last month) with a fine-tooth comb, and the tech site flagged up some fresh details that flew under the radar at the time.

To recap briefly, the concept of the OS shown, codenamed 'Project Aion' — with the leaked material dating back to 2024 — was a lightweight web-based version of a Windows operating system that streamed apps to the desktop (as opposed to running them natively on the PC) and put Copilot at the heart of the experience.

This was a horror show of an idea for many, of course, and what Windows Latest starkly highlights here is the extent to which Microsoft was building Aion around AI. In a SharePoint site in the leak, it's described as a "Copilot OS" and a cross-platform system that can span all devices and is generically known as an "Agent OS".

The broader idea, is said to be of an operating system fashioned around "an agent that marshals and organizes all the capabilities of our computers and our clouds on our behalf", and that this is known as an "agent of agents" or the "outside agent".

"The version that Microsoft will build should be known as Copilot OS or the Outside Copilot," the top-level description on the SharePoint site observes. Another term mentioned is a "self-driving OS", which hints at the desire to build an autonomous platform powered by AI here.

Copilot is envisioned as being the "primary way people express, entertain, and educate themselves, and complete tasks across all aspects of their lives".

So, what's the big deal here? Windows Latest breathes a sigh of relief that the "odds are already in favor" of this abandoned Aion concept staying dead and buried, arguing that Microsoft is clearly backtracking on AI features these days. And that's very true — there's no denying that Microsoft has reversed course on pushing AI quite so hard as it did in 2025.

But I don't think we can declare that 'Aion is dead' quite so readily. Yes, that exact concept may be buried, but there are nuances here. For me, what Windows Latest has surfaced shows just how serious Microsoft was about exploring the idea of a fully AI-driven desktop. More to the point, an operating system that was effectively an 'agent of agents', or an overseeing AI pulling the strings of a collection of smaller dedicated agents working within the framework of that system.

Here's the thing: Microsoft's efforts to rein in AI within Windows 11 certainly exist (although I wonder about how much of this is for show, frankly). The software giant is currently delivering its best effort to please the disgruntled masses, and a big part of that is fixing Windows 11 — but another hefty piece of the puzzle is to place less emphasis on AI and shoveling more Copilot features into the desktop OS.

But don't be mistaken here: Microsoft still very much sees AI as the future. The company just realizes that it can't be vocal about that right now, especially given that the RAM crisis has forced 8GB laptops back onto the scene, as notebook makers, including Microsoft itself, try to cope with hefty spikes in the cost of manufacturing these devices.

It's a bit embarrassing to be talking about Copilot+ PCs needing 16GB of RAM for AI features when Surface models have had to be reintroduced packing 8GB to get their price down to a vaguely palatable level. Indeed, talk of Copilot+ devices seems to have evaporated this year, as if Microsoft feels this is best brushed under the carpet for now. While a recent leak from Lenovo talked about 'Non-Copilot' laptops with less than 16GB of memory (as flagged by Windows Latest), this kind of spec talk isn't something you'll hear from Microsoft.

For me, it's clear enough that Microsoft is downplaying AI in a strategic manner for the time being, and likely through to next year. The next big thing, however, remains AI agents in Windows, even if Windows 11 isn't going to be transformed into next-gen Windows Copilot (or whatever a more AI-centric desktop platform might be called).

Microsoft is still very busy working on those agents. These entities will begin the shift towards an operating system that's built around AI, with smaller-scale agents executing dedicated tasks on the local PC (with the user's permission, of course, to access stuff). This will be a gradual ramping up of AI usage within Windows 11 (and while folks who hate AI and everything it stands for won't have to go anywhere near these agents, doubtless the idea is that minds will be changed eventually).

I think it's also telling that in Microsoft's recent roundup of the progress it's made in fixing Windows 11, the company talked about future improvements for the OS later this year, and a central aim was to streamline resource usage so the operating system runs better with 8GB of RAM. Interestingly, a few other goals were listed alongside that, and one of them was to make "voice more natural and fluid to interact across the apps you use every day". If you recall, part of the initial sales pitch for AI in Windows 11 was Copilot Voice (and Vision), so I think the importance placed on voice functionality here reflects a broader AI goal that's still in the background.

Ultimately, I think Microsoft is still pushing towards an operating system that's built around AI; it's just that the timeline to reach this end-game objective has been pushed further out. While Project Aion as leaked before was too big a concept, it clearly shows how Microsoft ranks the importance of AI for the future — and I think it's a mistake to think this idea is somehow 'dead' or derailed.

As far as I'm concerned, this remains the destination where Microsoft is heading with next-gen Windows: a lightweight (possibly modular) OS focused on AI, and one that leverages the cloud and streamed apps, too. I think the leaked Project Aion shows us the future as Microsoft wants to realize it, but what it doesn't mention at all is what I think will be another key driver for the software giant: subscription charges.

The golden ticket for Microsoft is to get consumers subscribing to the Windows platform (as businesses do – well, enterprises anyway). AI agents as Windows add-ons with a small monthly (or yearly) fee attached seems a likely way to bring this monetization method into play while making minimal waves (and I recently discussed how there are signs that this is already happening).

That will eventually turn into a grander scheme, and Windows could, over time, end up getting a lot closer to the Aion or Copilot OS concept than some might imagine — although admittedly, that could still be a long way off.

Back in June, Rockstar Games announced that Grand Theft Auto 6 — perhaps the most anticipated game of all time — would only be available as a digital download, with physical boxes containing redemption codes rather than discs.

Days later, Sony sent shockwaves through the gaming community by announcing that it would cease production of all PlayStation discs in January 2028. With Xbox on unsteady ground and Nintendo already relying on controversial game-key cards for many of its releases, Sony’s decision felt like the beginning of the end for physical gaming media.

Still, as someone who grew up buying games at brick-and-mortar stores, it's a real shame to just let physical games fade away — especially when physical media has made such a comeback in other industries.

On top of being a lifelong gamer, I’m also a DJ and huge music nerd — so the recent news has made me think about vinyl’s return to popularity in the music industry. With that in mind, I spoke to four experts from across the worlds of gaming and music to find out whether a similar revival could be on the cards for physical games.

Sony’s decision to stop making physical game discs hasn’t come out of nowhere. Physical game sales have been in decline for years, with Gamespot reporting that 80 per cent of all PlayStation software sales in the latest fiscal year were digital.

John O’Shea is co-CEO and creative director at the National Videogame Museum in Sheffield, UK. He tells me that Sony’s decision will have wider impacts on how we preserve and share games going forward: “What we’re hearing from communities is that people are worried that some of the games they care about deeply might become less accessible to them as a consequence of being digital only.

“It’s brilliant [at first] because you can access whatever you want,” he continues, “but what’s tricky is if it gets taken down or delisted from the catalogue.”

O’Shea adds that, in the UK, video games are not archived with as much care as other forms of media: “The wider challenge is that there is not currently an integrated framework for video game conservation. Individual companies should, and rightly do, pursue their own business focus, but where something exists in a digital format, copies can’t easily be made within a legal framework.”

The decline in physical game sales has tracked with a decline in brick-and-mortar gaming stores. Leading US retailer GameStop has closed more than 700 of its domestic stores since early 2025, and the once-mighty UK retailer Game has been reduced to a section in sporting goods store Sports Direct.

Khalil Madim is assistant manager of London independent game store Game On. He tells me that the business is preparing to shift away from selling games altogether: “We might change the entire business to electronic maintenance and parts for PCs. We want to do something that you really need a person for.”

Game On already does most of its trade through its repair service. The store opened in 2009 as a combination game and repair shop, but the latter has taken priority due in part to low margins on new boxed games.

“When it all becomes digital, we might be out of the business,” he continues, “it will impact us so badly. The customers aren’t happy as well – when they buy a game for, say, £10, they can sell it back to us for £5, or they can hand it over to friends or family. But when it’s a digital copy, they can’t do anything.”

Gaming retail finds itself in a similar tricky situation to the vinyl industry at the advent of digital downloads and music streaming.

According to the Recording Industry Association of America, LP and EP vinyl sales in the US fell from more than $1.5 billion in 1978 to just $6 million in 1993 – a fall of more than 99 per cent. However, in 2025 LP and EP sales crossed the $1 billion mark for the first time in more than 40 years. Vinyl has also surged in popularity in the UK, with the BBC reporting in 2023 that the industry was at its healthiest since 1990.

Tom Durston runs record store Inverted Audio in south London, as an extension of his blog of the same name: “I’ve been buying records since I was 13 years old, and I used to buy video games as well. Back in the 90s you had to buy a game [in person]. You’d have the little box, and the artwork – it’s the same as a record.”

Durston tells me that his store succeeds because of the curation that physical media requires: “I’ve essentially built a platform for my music taste – over the years an international community of readers has trusted me to filter out good music. We’re a record store, but we’re also an editorial platform.”

He adds that physical media requires more investment from producers, which engenders more investment from consumers: “If you have a physical format, you’re introducing quality control – is it worth pressing 500 records, for example? If not, there’s no point.”

The community Durston mentions is about more than where you buy your media. For DJ and artist manager Madison True, physical media gives people something to connect over in a world of fleeting digital interactions.

True’s ‘Vinyl Bitch’ workshops bring beginner female, non-binary, queer and trans DJs together over a pair of turntables: “The thing we try to cultivate is that community, that love, and that discussion. It’s so cool to see people that I know or those that have never met each other become homies by the end of the night, and it’s because they’ve come together over this piece of physical media.”

True continues: “How cool is it that people can come together no matter their sexual identity, or gender, or religion, and come together and talk about how cool something looks and sounds? You wouldn’t get that if it wasn’t physical.”

Before setting out to write this article, I thought that the best hope for gaming was to mirror record labels’ investment in nostalgic special editions – even without a disc, gatefold covers with new artwork and box sets with bonus goodies and collectibles could be enough to make owning a game feel worthwhile.

The issue is that the games industry is more centralised than the music industry. Sony licenses the creation of PlayStation discs and is the sole manufacturer of PlayStation consoles, meaning indie developers can’t just opt out of working within their system.

As such, John O’Shea says that gamers are keen to hold on to anything that gives them a sense of ownership: “In the fan community, there’s a subjectivity of stories that’s really important. Anything that feels like it’s allowing less of a sense of ownership for the game’s players in the communities is going to have an emotional response.

“With video games, it’s the players that bring games to life, and the players want to have a sense of ownership in return.”