Microsoft Hikes M365 Prices by Up to 46% in Six Countries for AI Integration
Microsoft has announced significant price increases for Microsoft 365 (M365) subscriptions in Australia, New Zealand, Malaysia, Singapore, Taiwan, and Thailand. The hike, ranging from 29% to 46%, is due to the integration of advanced AI features like Copilot. Users are expressing discontent, while Microsoft attributes the changes to extensive subscription benefits added over the years.
The annual M365 Personal subscription in Australia will jump from AU$109 to AU$159, a 46% increase. Meanwhile, the M365 Family subscription will rise from AU$139 to AU$179, a 29% increase. Users are accusing Microsoft of price gouging, but the tech giant maintains that the adjustments reflect the value added by features like Copilot and Microsoft Designer.
Microsoft Copilot, a new AI feature, provides contextual assistance in apps like Word, Excel, and PowerPoint. Microsoft Designer offers AI-driven design suggestions. These features, along with enhanced security and creative tools, are cited as reasons for the price increase. Microsoft assures customers that it will consider feedback during the rollout.
Some subscribers are exploring options to avoid the price increase. Microsoft offers a version of M365 without Copilot, but users report difficulties in locating this option. Companies like SuperOffice and Polaris Office provide more affordable alternatives with similar features to Copilot and Microsoft Designer, though with varying levels of advanced functionality.
Microsoft's price increase for M365 subscriptions, driven by AI integration, has sparked user backlash. While Microsoft defends the changes, users are seeking alternatives. The tech industry trend of price adjustments for AI integration is evident, with Google recently raising its Google Workspace subscription by 17%. Microsoft promises to listen to customer feedback during the rollout.
