Microsoft’s Latest Magic Trick: Making Customers Pay More for Less

Imagine this: you’re comfortably using your Microsoft 365 subscription, scrolling through Word or Excel, when you receive an email about a "small change." What’s the change, you ask? Oh, just a casual 50% price hike. But don’t worry, it comes with the added "bonus" of AI features you probably didn’t request. Welcome to Microsoft’s latest strategy to redefine "forced upgrades."
The "Oops, You’re Upgraded" Strategy
In Australia, New Zealand, and a few other unlucky regions, Microsoft 365 subscribers are facing significant price increases. Personal plans now cost NZ$179/year (up from NZ$129), while Family plans have jumped to NZ$229/year (previously NZ$179). The reason? Microsoft’s shiny new AI tools: Copilot and Designer. These features promise to "revolutionize" your workday while quietly revolutionizing the strain on your budget.
Here’s the twist: these changes are anything but optional. Microsoft is seamlessly transitioning everyone to the pricier plans - unless you happen to uncover their hidden "classic" plan. This plan lets you cling to your original pricing, much like a shipwreck survivor clinging to debris.
How to Escape the AI Paywall
For those willing to navigate Microsoft’s maze-like subscription settings, there’s hope. Selecting "Cancel Subscription" in your account settings triggers a rare phenomenon: the elusive "Microsoft 365 Personal Classic" plan magically appears. At NZ$129/year, it’s a bargain compared to the AI-heavy alternative.
Why is this option buried under layers of menus? Because dark patterns are tech’s version of a magician’s sleight of hand. Look here, not there - and suddenly, you’ve paid 50% more for features you may never fully use.
AI Tokens: The Sting in the Tail
Think paying extra means unlimited AI perks? Think again. Copilot comes with a paltry 60 monthly tokens. Run out of tokens, and your AI assistant goes silent. Want more? Shell out an additional NZ$37/month for "Copilot Pro." And if you’re on a Family plan, only the main account holder gets to use Copilot. Sharing isn’t caring in Microsoft’s world.
Global Implications
This fiasco could foreshadow what’s coming to other markets. With AI development costs skyrocketing, Microsoft appears keen on passing the bill to consumers. And why not test the waters to see how much frustration customers and regulators will tolerate?
Skippy’s Hot Take
This debacle serves as a lesson in vigilance. Scrutinize your subscriptions, dig into those terms, and remember - "Cancel" might just be your secret weapon. Microsoft may be a tech giant, but even giants can stumble when consumers push back. If they’re charging you for AI, maybe they should’ve used it to predict this backlash. Until then, keep your eyes open and your wallets guarded.