The Copilot Crisis: Microsoft's Internal Shift to Claude Code and Pricing Collapse

Microsoft's internal adoption of Claude Code signals a loss of confidence in GitHub Copilot's competitive edge, while the simultaneous shift to token-based billing transforms AI development from a subscription benefit into a potentially prohibitive cost center. For the broader market, this dual failure—technical and commercial—suggests that the current generation of AI coding assistants faces a fundamental credibility and affordability crisis.