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Microsoft fixes a Windows 11 annoyance as PC revenue declines

arstechnica.com83 points196 comments
Screenshot of Microsoft fixes a Windows 11 annoyance as PC revenue declines

Microsoft is rolling out preview update KB5127936 for Windows 11 versions 26H2 and 25H2, with a long-requested fix for the crowded, reorganized right-click menu. A new customization control lets users choose which built-in commands appear, rearrange items on the main menu, and decide where third-party extensions appear. This addresses complaints that familiar options were moved into an icon row or hidden behind “Show more options,” forcing users to adjust habits or rely on workarounds. The update also adds Cloud Rebuild, which can reinstall Windows from an image and drivers downloaded through Windows Update, even if the PC will not boot. It requires neither external installation media nor a prepared recovery image, but it is effectively a fresh installation: existing files and applications are not retained. Users can also securely erase system drives before reinstalling.

The update arrives as Microsoft reports weakening sales tied to Windows and PCs. Windows OEM revenue fell 27 percent, or 28 percent in constant currency, compared with the prior year, reflecting the end of Windows 10 support’s earlier boost, inventory reductions, and softer PC demand. The broader Windows OEM and devices category, including Surface hardware, declined 22 percent, and Microsoft expects the pressure to continue through the fiscal year. New hardware arrived too late to affect the quarter. Meanwhile, cloud businesses remain a strong counterpoint: Azure revenue grew 48 percent and Microsoft Cloud revenue rose 30 percent year over year, accounting for about 70 percent of Microsoft’s $92.3 billion in quarterly revenue.

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