Omar Marks | Light Rocket | Getty Images
Microsoft is adding artificial intelligence tools to its consumer Microsoft 365 bundles and raising prices for the first time since launching the subscription 12 years ago.
in a blog post On Thursday, Microsoft said it would bring the Copilot AI assistant to the Word, Excel, PowerPoint, Outlook and OneNote apps for consumers with the Microsoft 365 suite.
Bryan Rognier, vice president of Microsoft 365 Consumer, wrote in the book that the $3 per month increase is meant to “reflect the broad range of subscription benefits we have added over the past 12 years and enable us to deliver new innovations in the years to come.”
Microsoft 365 Personal now costs $9.99 per month and $99.99 per year, up from $6.99 per month and $69.99 per year. The Microsoft 365 Family plan, which can serve up to six people, will increase in price from $9.99 per month and $99.99 per year to $12.99 per month and $129.99 per year.
Microsoft had 84.4 million Microsoft 365 consumer subscribers in 2017 September quarterup 10%. Existing customers will see the new price when they renew, the blog post said.
Microsoft 365, formerly known as Office 365, is important for the company to compete with rivals Google’s Productivity tools for the consumer market. But for Microsoft, selling to enterprises is much more profitable.
Microsoft 365 business products and cloud services accounted for 31% of the company’s fiscal third-quarter revenue, while Microsoft 365 consumer products and cloud services contributed less than 3%. 2022, Microsoft price rise Commercial Microsoft 365 subscription implemented for the first time.
In addition to bringing Copilot to Microsoft 365 apps, consumer subscribers can also use the AI image editing tool Microsoft Designer.
Microsoft said that for a limited time, existing subscribers can switch to a plan without Copilot or other artificial intelligence.
“These plans will continue as they are, but for some new innovations and features, you will need to subscribe to Microsoft 365 Personal and Home,” the company said.
watch: Microsoft says 2025 is the year its commercial customers will be “quantum ready”
