Microsoft testing 45% price hikes for M365

微软 has advised users of its Microsoft 365 suite in six Asia-Pacific nations they face big price rises when they renew subscriptions.

We’re told these hikes are needed to “ensure Microsoft customers are among the first to access powerful AI features in our apps.”

News of the price rises arrived in emails sent to subscribers last week. An annual Microsoft 365 Family subscription that, when next renewed, will rise from AU$139.00 to AU$179 ($85.50 to $110) – just under 29 percent.

Screenshots have also circulated of emails sent to holders of M365 Personal subscriptions that will rise from AU$109.00 to AU$159 ($67 to $98) or almost 46 percent. Microsoft’s Australian web site lists $159 and $179 as the current price points for Personal and Family subscriptions.

The price rises have been flagged in Australia, New Zealand, Malaysia, Singapore, Taiwan, and Thailand.

Regarding these increases, a Microsoft spokesperson said:

These price changes reflect the extensive subscription benefits that Microsoft has added over the past 12 years including advanced security with Microsoft Defender, creative tools like Clipchamp, and countless enhancements to Word, Excel, PowerPoint, OneNote, and Outlook, in addition to new features such as Microsoft Copilot and Microsoft Designer.

Microsoft added that the price hikes aren’t mandatory as subscribers can choose to sign up for a lesser version of M365 that does not include Copilot – but chose not to answer a question about whether these price rises will be introduced elsewhere. It’s also unclear if the price rises will come to corporate licenses.

The spokesperson did say the purpose of the changes is to allow Microsoft a chance to “listen, learn, and improve.”

Making changes to prices or products in select countries is a common tactic vendors use to test customer reaction. The six nations chosen for this test are a good fit for such tests, as they enjoy different levels of prosperity and tech adoption.

Reaction to the changes has not been positive. There has been plenty of online commentary accusing Microsoft of price gouging. Australian subscribers seem particularly piqued, as the high cost of living is a major issue down under.

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