Can VS Code Kill Cursor and Windsurf?

AI coding tools present a mixed bag. Whether it’s a security nightmare, a slowdown in software development, or a boost in developer productivity by 10x, they bring both advantages and disadvantages. Among the bunch of tools, Cursor and Windsurf are increasingly gaining popularity, even though users seem to switch back and forth.

While Microsoft’s ever-popular Visual Studio Code, the integrated development environment (IDE), might seem to have lost its touch in the AI-assisted coding game. Can it catch up with these tools even though they are VS Code forks? 

More importantly, can it disrupt these AI editors and is Microsoft quietly trying to do that?

The Giant vs New Kids on the Block

It is no surprise that Microsoft’s VS Code still has the edge over AI coding tools when it comes to market share. While the new tools can offer interesting features, it is not as easy to dominate the IDE market share.

As per Stack Overflow’s 2024 developer survey, 73.6% of respondents used Visual Studio Code. The survey did not include stats for AI-first Cursor and Windsurf, which could suggest that they have yet to make a mark in the IDE space.

While Microsoft had GitHub Copilot as an offering, VS Code did not have ‘vibe coding’ abilities.

However, that changed last week, when Microsoft added the capability of letting users choose the model they want, coupled with MCP integration to give a proactive and context-aware coding assistant experience. 

With similar features on VS Code, a tried-and-tested IDE, will users switch back to an IDE they are familiar with or go with newer options?

When AIM asked about comparing the AI code editors, Tom Smykowski, a staff frontend engineer, said, “The competition between Copilot, Windsurf and Cursor is fierce. So the outcomes vary from one case to another. What I can tell you right now is that people just test different apps and check what works for them. Interestingly, it means there’s enough space for various IDEs.”

Emad Mostaque, founder of Stability AI, wrote on X that VS Code is good open-source software backed by a good team and has the potential to harness GitHub’s network. He highlighted that Cursor has no feature that could not be integrated into VS Code.

Is Microsoft Making a Move?

Smykowski recently wrote about an interesting development in a blog post. He noticed that Cursor users were dismayed when they could not get a VS Code extension to work. 

Those who tried to use Microsoft’s C/C++ programming language extension received an error message that stated, “The C/C++ extension may be used only with Microsoft Visual Studio, Visual Studio for Mac, Visual Studio Code, Azure DevOps, Team Foundation Server, and successor Microsoft products and services to develop and test your applications.”

This was found to be the updated section of text in the license for the VS Code extension in question. The licence read, “You may install and use any number of copies of the software only with Microsoft Visual Studio, Visual Studio for Mac…” almost the same as the error for Cursor users. Furthermore, the licence was updated on April 1. 

Cursor users were advised to install an earlier version of the extension to make things work.

A GitHub user on the issue thread said, “This was inevitable, especially given how they chose to build and deliver Cursor. Hopefully, they enjoyed the ride while it lasted. The extensions block is a classic, old-school Microsoft business move. They were always going to eat Cursor’s lunch. To be honest, I’m surprised it took this long.”

AIM reached out to Microsoft for comment, but has not received a response as of publication.

What Happens to Cursor and Other VS Code Forks?

Smykowski told AIM, “I think it may cause some trouble for some developers. Overall, I think it won’t stop competitors based on VS Code forks.”

Undoubtedly, Cursor users were unhappy because of the changes made in Microsoft’s VS Code. A user mentioned that if this error is not resolved, Cursor will need to provide an alternative extension; otherwise, the user will not pay a premium for the tool. 

Some users emphasised that Microsoft is not to blame here, as its licence agreements contained such restrictions, which AI coding tools like Cursor ignored. For instance, in 2018, a Microsoft official explained in a GitHub issue that the C# extension debugger only supports running in the official version of VS Code.

The developer community on GitHub involved in the discussion thread suggest that the modern AI code editors team up, collaborate, and create an open-source C/C++ extension to fight back against such moves by Microsoft.