Microsoft 365 Personal and Home experience price hikes, with exciting new features


January 17, 2025 by our News Team

Microsoft is raising prices for its Microsoft 365 subscriptions in more countries, offering new AI tools and features, but some may question the value of the increase.

  • Price increase comes with access to additional Copilot features
  • New AI tools make everyday tasks more efficient
  • Privacy concerns addressed with assurance that user data will not be used to train AI models


Microsoft is increasing the prices of its Microsoft 365 subscriptions in more countries, following a previous price hike in New Zealand and Australia. This move comes as one of the first increases since the platform was launched over 12 years ago. Previously, the annual subscription for Microsoft 365 Personal in the US was $69.99, while the Home plan cost $99.99. Now, the prices will go up by $3 per month, making it $99.99 annually for Personal and $129.99 for Home.

Existing subscribers will not be affected until their next renewal, but the changes will take immediate effect for all customers. Along with the price increase, subscribers will also gain access to additional Copilot features. However, Microsoft assures users that the previous plans without AI capabilities will still be available for those who do not require them. It’s worth noting that some new features and improvements may not be accessible with these cheaper plans, especially those involving the use of new AI technologies.

The new AI tools allow users to easily access Copilot within their Microsoft 365 platforms, making everyday tasks more efficient. Whether it’s summarizing emails in Outlook or quickly creating presentations in PowerPoint, users can take advantage of these advanced features. Additionally, users have access to the Microsoft Designer tool for image creation.

To address privacy concerns, Microsoft emphasizes that user document data will not be used to train the AI models, ensuring a higher level of privacy.

It’s interesting to see how Microsoft is leveraging AI to enhance its productivity suite. With these new capabilities, users can streamline their workflows and accomplish tasks more effectively. However, it’s important to consider whether the increased price is justified for those who may not need or utilize these AI features. Will this move be well-received by Microsoft 365 subscribers, or will it push some users to explore alternative options? Only time will tell.

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About Microsoft:

Microsoft, founded by Bill Gates and Paul Allen in 1975 in Redmond, Washington, USA, is a technology giant known for its wide range of software products, including the Windows operating system, Office productivity suite, and cloud services like Azure. Microsoft also manufactures hardware, such as the Surface line of laptops and tablets, Xbox gaming consoles, and accessories.

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