Microsoft 365’s Price Increase in 2025: What It Means for Users and Why WPS Office Is a Strong Alternative

TIMESINDONESIA, JAKARTA – Microsoft has announced another major price increase for its Microsoft 365 subscription plans, affecting both individuals and businesses. Many users who have relied on Microsoft’s ecosystem for years are now facing significantly higher costs, leading to frustration and uncertainty about whether the software is still worth the price.  

At the heart of this change is Copilot AI, a feature Microsoft claims will revolutionize productivity. However, users are forced to pay extra for Copilot AI, whether they want it or not. The price increase has sparked debates across Microsoft’s community forums, with many users actively looking for alternative office suites like WPS Office.  

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In this article, we will break down:

✅ Why Microsoft is increasing prices 
✅ How much you’ll be paying under the new pricing structure  
✅ The major concerns from the Microsoft community  
✅ Why WPS Office is emerging as the best alternative  

What Is Microsoft 365? 

Microsoft 365 (formerly known as Office 365) is a cloud-based subscription service that includes popular applications like Word, Excel, PowerPoint, Outlook, and OneDrive. Unlike traditional one-time purchase software, Microsoft 365 requires users to pay a monthly or annual subscription fee for continued access to these tools.  

Over the years, Microsoft has gradually shifted towards a subscription-only model, removing the option for users to buy a permanent license for their software. This means that even after years of paying for the service, users never actually own the software—they only have access as long as they continue paying.  

Why Is Microsoft Raising Prices? 

Microsoft has justified its 2025 price hike by pointing to the integration of Copilot AI, an artificial intelligence tool designed to help users with tasks like document creation, data analysis, and email management. However, there are two major reasons behind the price increase:  

1. Microsoft’s Shift Towards AI-Powered Productivity  

Microsoft has heavily invested in artificial intelligence to enhance its Office suite. Copilot AI is designed to:  

✅ Generate text automatically in Word documents  
✅ Analyze data patterns in Excel  
✅ Create PowerPoint presentations based on simple text prompts  
✅ Summarize emails and draft replies in Outlook  

Microsoft claims that these AI-driven features productivity, but many users argue that not everyone needs AI for daily tasks. Despite this, Copilot AI is now a mandatory feature, and all users must pay extra for it—even if they never use it.  

2. Microsoft’s Push for Higher Subscription Revenue  

Microsoft initially launched Copilot AI as a $30/month add-on, but many users refused to pay for it ([ProductSide]). To boost AI adoption, Microsoft bundled Copilot into standard Microsoft 365 plans—effectively forcing users to accept the price increase.  

As a result, the real reason behind the price hike is revenue growth. Microsoft aims to:  
✔ Increase subscription prices without losing customers  
✔ Lock users into its AI ecosystem 
✔ Maximize profits from businesses that rely on Microsoft 365 

Microsoft 365 Price Increase: How Much Will You Pay?  

The new pricing structure for 2025 has been confirmed as:

For Individual Users  
Microsoft 365 Personal → $9.99/month (Previously $6.99)  
Microsoft 365 Family → $12.99/month (Previously $9.99)  

For Businesses and Enterprises  
Microsoft 365 Business Standard→ $14.99/user per month (Previously $12.50)  
Microsoft 365 Business Premium→ $24.99/user per month (Previously $22.00)  

For companies with 50+ employees, this represents a significant financial burden, adding up to thousands of extra dollars per year.  

Microsoft 365 Free Version: Is It a Good Alternative?  

Microsoft offers a free, ad-supported version of Office, but it has serious limitations:
❌ Intrusive banner ads appear inside Word, Excel, and PowerPoint  
❌ No option for local file storage—everything must be saved to OneDrive  
❌ Fewer features compared to the paid version  

Many users report that the ads are disruptive and slow down performance, making it a frustrating experience.  

Why Many Users Are Switching to WPS Office  

WPS Office has emerged as one of the best alternatives to Microsoft 365. Here’s why:  

1. No Forced AI Integration  

Unlike Microsoft, WPS Office does not force users to pay for AI-powered features they don’t need.  

2. Full Compatibility with Microsoft File Formats  

WPS Office supports:  
✔ DOCX, XLSX, PPTX → Open and edit Microsoft Office files  
✔ PDF editing tools → Convert and modify PDFs  
✔ Cloud sync and offline mode → Work seamlessly across devices  

3. Cost Savings: Free & One-Time Payment Options  

WPS Office offers:  
✔ A fully functional free version with minimal ads  
✔ A one-time purchase option for premium features (vs. Microsoft’s expensive subscription model)  

4. Offline Access & Cross-Platform Support  

Microsoft’s free version requires internet access, while WPS Office works offline and is available on:  
✔ Windows, Mac, Android, and iOS  

Conclusion: Should You Stick with Microsoft or Switch to WPS Office?

If you rely on AI-driven features, Microsoft 365’s price increase might be worth it. However, if you’re looking for a budget-friendly, flexible alternative, WPS Office offers a better deal.  

Here’s a simple comparison:  

Pricing: Microsoft 365 starts at $9.99 per month for individuals and goes up to $24.99 per user per month for businesses. In contrast, WPS Office offers a completely free version and a one-time purchase option for premium features, making it more cost-effective in the long run.  

AI Features: Microsoft 365 now includes Copilot AI by default, which contributes to the price increase. Many users find it unnecessary. WPS Office, on the other hand, does not force AI integration, allowing users to pay only for the features they need.  

Ad-Free Experience: The free version of Microsoft Office includes intrusive ads, which can be distracting. WPS Office, however, has minimal ads in its free version and an ad-free experience in the premium version.  

Offline Access: Microsoft’s free version requires an internet connection and forces users to save files on OneDrive. In contrast, WPS Office offers full offline access, allowing users to work without internet dependency.  

File Compatibility: Both Microsoft 365 and WPS Office support popular formats like DOCX, XLSX, and PPTX. However, WPS Office is designed to provide seamless compatibility without requiring a subscription.  

Final Recommendation  
✔ If you need AI-powered tools → Microsoft 365 might be useful.  
✔ If you want a free, ad-free experience → WPS Office is the better choice.  
✔ If you run a small business and need multiple licenses → WPS Office saves money.  

What’s Next?  
If you're considering switching, download WPS Office and compare it with Microsoft 365 before making your final decision.  

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