Microsoft 365 Price Increase Notification Sent, Yet Microsoft Denies Link to Copilot

Recent reports from Windows Latest indicate that Microsoft has begun notifying its existing subscribers about an impending hike in Microsoft 365 subscription fees. The increase is attributed to the integration of the AI tool, Copilot, although surprisingly, Microsoft has not explicitly acknowledged this connection.

The updated subscription fees will see costs for Microsoft 365 Personal and Family plans rise by $3 per month. Microsoft addressed this increase in a recent blog post, where they discussed the inclusion of Copilot within Microsoft 365 Personal and Family subscriptions.

According to the company, the price increase is justified by claiming it reflects “the extensive subscription benefits we’ve added over the past 12 years and enables us to deliver new innovations for years to come.” However, communications to users in the UK suggest that the hike stems from inflation and is mandatory for all subscribers.

This narrative, however, obscures the fact that the Copilot fee is essentially being bundled within all subscription plans. Thankfully, existing users have the opportunity to revert to a non-Copilot plan.

Subscribers in Canada received similar notifications regarding the change. As illustrated in the email screenshot, users were not informed about the availability of reverting to their prior, non-Copilot plans. Currently, this new pricing structure is primarily applicable to new subscribers.

Microsoft 365 Price Hike Email to Windows Latest

If you wish to avoid the new Microsoft 365 subscription that incorporates Copilot, the process is straightforward. You’ll need to navigate to your account settings and select the cancelation option. This action will allow you to switch to the Microsoft 365 Personal Classic plan, which is also identified as the non-AI plan.

It is crucial to note that “classic” or non-Copilot subscriptions are reserved exclusively for existing users. Therefore, new customers will not have the opportunity to access these lower-cost plans.

Comparison of Old and New Microsoft 365 Subscription Fees

Following this announcement, Microsoft updated its official pricing page to reflect the new costs associated with Microsoft 365 subscriptions. Previously, the Microsoft 365 Family plan was priced at $9.99 per month, with the Personal plan costing $6.99. Below you can see the earlier plans outlined.

Microsoft 365 Old Pricing — Source: Microsoft (Wayback Machine)

With the new fee adjustments, the Microsoft 365 Family subscription will now cost $12.99 a month, while the Personal subscription will be $9.99 per month.

Microsoft 365 Price Hike — Source: Microsoft

This price hike also extends to annual subscriptions, which will see an increase of $30 for both Family and Personal plans.

As highlighted, the Microsoft 365 Personal Classic plan has been omitted from the new offerings, leaving newcomers with no other choice but to pay the Copilot fee integrated into the Microsoft 365 subscription.

While Microsoft’s aim to fold Copilot into its productivity suite is understandable, their recent decisions—including the rebranding to 365 Copilot and this pricing adjustment—have not been well-received by all users. In their pursuit to remain competitive with AI advancements, Microsoft risks alienating some of its established user base.

A more user-friendly approach from Microsoft could have involved offering a non-Copilot subscription option at a slightly higher price. This would provide users with the freedom to either opt for the more advanced Copilot plan or stick to a basic subscription.

This commentary reflects my perspective on the situation. What are your thoughts on the fee increase? Share your opinions in the comments section below.

Frequently Asked Questions

1. Why did Microsoft increase the subscription fee for Microsoft 365?

The increase in subscription fees for Microsoft 365 is primarily attributed to the integration of the AI tool, Copilot, which Microsoft has included in the Personal and Family plans, enhancing the overall functionality.

2. Can existing users switch back to a non-Copilot plan?

Yes, existing users have the option to revert to the Microsoft 365 Personal Classic plan by navigating to their account settings and selecting the cancellation option, thereby avoiding the new subscription fees associated with Copilot.

3. How have the prices changed for new subscribers?

New subscribers will see Microsoft 365 Family plans increase to $12.99 per month, while Personal plans will rise to $9.99 per month, effectively reflecting the incorporation of Copilot’s features in these subscriptions.

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