The price changes appear to be a test to gauge customer reactions in regions with varying levels of prosperity and tech adoption. Microsoft has not clarified if these increases will extend to other regions or corporate licenses. The company states the changes are part of efforts to "listen, learn, and improve," and they coincide with Microsoft's plans to invest heavily in AI-focused datacenters. However, many customers note that similar AI features are available for free from other providers, raising questions about the necessity of the price hikes.
Key takeaways:
- Microsoft is increasing prices for its M365 suite in six Asian nations to fund AI feature access, with Family and Personal subscriptions seeing significant hikes.
- The price increases are not mandatory, as subscribers can opt for a lesser version of M365 without CoPilot, though this option is hard to find.
- The price hikes are part of a test to gauge customer reaction in countries with varying prosperity and tech adoption levels.
- There is significant customer backlash, with accusations of price gouging and concerns over the high cost of living, particularly in Australia.