Microsoft Hikes M365 Prices Up to 46% in Asia-Pacific for AI Integration
Microsoft has announced significant price increases for its Microsoft 365 (M365) subscriptions in six Asia-Pacific countries, including Australia and New Zealand. The hike, ranging from 29% to 46%, is attributed to the integration of advanced AI features like Copilot and the addition of new creative tools.
Microsoft has cited extensive subscription benefits added over the past 12 years, such as advanced security and enhancements to core applications, as reasons for the price increase. The tech giant is not alone in this trend, as Google recently incorporated its AI Gemini Business plan into the Google Workspace suite, resulting in a 17% subscription increase. As AI integration into common SaaS applications becomes more common, price fluctuations should be expected for most users.
Microsoft has justified the price changes by pointing to the inclusion of new AI features like Microsoft Copilot and Microsoft Designer. The company has stated it will 'listen, learn, and improve' based on customer feedback during the rollout. However, some users have reported difficulties in locating a version of M365 without AI to avoid the price increase.
In Australia, the M365 Family subscription will rise from AU$139 to AU$179, a 29% increase, and the Personal subscription will jump from AU$109 to AU$159, a 46% surge. Users have reacted negatively to the price increase, accusing Microsoft of price gouging and exploiting its market position. Companies like Make and Synthesia offer AI-focused alternatives with potentially lower costs, though specific pricing for these services targeting Microsoft 365 users is not detailed. Google Workspace is a more direct competitor, offering integrated AI tools like Google Gemini, but its pricing is not explicitly lower unless considering specific plans or features.
Microsoft's price increase for M365 subscriptions in the Asia-Pacific region has sparked user backlash, with accusations of price gouging. The company attributes the hike to AI integration and added benefits, while users struggle to find alternatives to avoid the increase. As AI becomes more prevalent in productivity suites, users can expect price fluctuations in the future.
