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At first I thought this was a Figma-like tool. I wonder if Microsoft could compete in that space, or is the UI/UX community to opinionated and outspoken to stop the classic enterprise argument?

"We're already paying $$$ to MS and we'll get a big discount / bundle deal for [MS alternative], we can't justify the cost for [better non-MS alternative]"

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It is not a Figma alternative. Figma is a tool for designers to design. Microsoft Designer seems to be a tool for non-designers to attempt design, with the help of AI. Very different audiences, and trying out the tool, everything about the UI/UX makes that very clear, Microsoft Designer is more like a wizard for creating a initial design, while Figma is a proper tool.

This seems to be like what Paint is to Photoshop in that sense

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