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The message is more like that the desktop is too pricey and does not bring back money, so they end up dealing with the £££-generating options.

Does the desktop on Linux have a viable future?

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I think part of it, is it was too fragmented of a codebase that migrating to Wayland would have been more effort than re-polishing Gnome 3 would be. There were few advantages since the non-desktop (phone, tablet) targets are also going away.

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