The AI is mandatory now, and so is the $3
Microsoft 365 Personal and Family prices rose $3/month with Copilot bundled in
The market's verdict: +4.7% on MSFT in the week after.
What actually happened
On January 16, 2025, Microsoft raised Microsoft 365 Personal and Family prices by three dollars a month, the first increase in twelve years, and the reason was Copilot: the AI was bundled into every consumer subscription whether subscribers wanted it or not. A lower priced "classic" plan without the AI does exist, buried in the cancellation flow, which is the software industry's most honest menu. The hike lands at renewal, so the surprise arrives personally, one subscriber at a time.
This one is officially acknowledged.
They did it more than once
Australia was the dress rehearsal. Everyone else got the same show without a regulator.
Links
-
Acknowledgement
- Microsoft Copilot Blog (official)
-
Impact
- The Verge (publication)
↳ caused by Copilot in Microsoft 365 pricing update
Timeline
- Jan 16, 2025 Stood by it Microsoft stood by it.