Nobody likes a price hike but Microsoft is preparing to raise the cost of its 365 subscriptions to “ensure Microsoft customers are among the first to access powerful AI features in our apps." Now, the price increase is coming to the U.S.
In a blog post, Microsoft unveiled that it will bring Copilot AI features to its suite of apps, inlcuding Word, PowerPoint, Excel, OneNote and Outlook, along with Microsoft Designer. However, it will cost users more.
Microsoft will increase the prices of Microsoft 365 Personal and Family in the U.S. by $3 per month or $30 for annual subscriptions. It's the first price hike since 365 launched, but the good news is users don't have to opt-in for the AI upgrade.
Those who already have a Microsoft 365 subscription can switch to a Basic plan without the Copilot features, meaning they won't have to pay the increased subscription fee.
"Productivity and creativity are at the heart of Microsoft 365, and with Copilot integration across our apps you’re now equipped with an AI assistant that makes your life easier (and fun)," Microsoft says in its post.
According to the post, Copilot can create plans in Word, analyze and offer ideas in Excel, generate slides and designs in PowerPoint and summarize lengthy emails in Outlook. In case you're using Microsoft 365 on Windows 10, be aware that they're officially dying.
Earlier this week, The Register (via TechRadar Pro) reported that Microsoft had sent out emails to 365 users in six Asia-Pacific countries, detailing that subscriptions will see a big price hike of up to 45%. The increase will come to Microsoft 365 Family and 365 Personal subscriptions.
According to emails, Australian 365 Family users will also see an increase from AU$139 to AU$179, while 365 Personal subscribers will have a rise from AU$109 to AU$159. That's a 45% price hike, and it's all for AI features and enhancements in apps that's contributing to it.
Currently, these price increases have been noted in several countries: Australia, New Zealand, Malaysia, Singapore, Taiwan and Thailand. Along with this, we've already heard of Microsoft announcing a 365 and Copilot price hike, which is set to arrive in April.
The price hike is set to contribute to several improvements to a suite of apps, such as "advanced security with Microsoft Defender, creative tools like Clipchamp, and countless enhancements to Word, Excel, PowerPoint, OneNote and Outlook," a Microsoft spokesperson said.
Fortunately, as mentioned, these price hikes aren't mandatory if users don't want the added AI features.
Is Microsoft Copilot worth the price increase?
One of the biggest AI features that seems to be bumping up the price for Microsoft 365 subscriptions is Copilot, but it's already had a rocky start. Microsoft Recall is an interesting yet flawed feature, while other features can be fun and useful, but not worth a 45% price increase.
With Microsoft following through with its price hike for AI features, it will need to ensure that it's AI features are updated and upgraded, offering more to users in apps such as Word, Excel, PowerPoint and more. Even our own Alex Wawro thinks Apple Intelligence is already better than Windows Copilot despite it still rolling out.
Luckily, there are other feature Microsoft is bringing to PCs, including being able to connect to a Meta Quest headset with three virtual displays, along with bringing an AirDrop-like feature for Windows to share files easily between a PC and iPhone.
