Microsoft recently announced it was increasing the annual cost of its Microsoft 365 Family subscription from £79.99 to £104.99. That’s a 31.6 per cent increase! The company claimed this was to “reflect the value we’ve added over the past decade, address rising costs and enable us to continue delivering new innovations”. But is that the full story?
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One reader decided to ask an AI chatbot what it thought. He asked ChatGPT how much profit the price increase would deliver to Microsoft and its shareholders. Based on an estimate of 82.5 million subscribers, ChatGPT calculated that the price rise would give the company an extra £2.06 billion in annual revenue.
What About Microsoft’s Honesty?
ChatGPT also noted that most of the price increase would be pure profit for Microsoft because the marginal costs for delivering digital services are very low. The chatbot assumed a 90% profit margin on the price rise, which would amount to an extra £1.85 billion in profit. The reader felt that Microsoft was not being honest with him, so he decided to cancel his subscription.
This shows how AI can be a powerful tool for holding companies accountable and getting to the truth behind their marketing claims. While you should always be careful with the information AI chatbots provide, they can give you insights that you wouldn’t get from a simple search engine.
The Pressure to Upgrade
This price hike comes at a time when Microsoft is already putting pressure on users to upgrade to Windows 11 by ending support for Windows 10 in October 2025. They have also announced that they will stop adding new features to Office 365 apps on Windows 10 in August 2026. This series of U-turns and changing messages is making many users feel frustrated and confused.
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Bibliography:
- “ChatGPT exposed Microsoft’s ‘dishonesty’.” Computeractive, Computeractive – Issue 715, 30 July-12 August 2025.
- “ChatGPT makes me think more deeply.” Computeractive, Computeractive – Issue 715, 30 July-12 August 2025.
- “Microsoft to stop adding new 365 tools for Windows 10 in 2026.” Computeractive, Computeractive – Issue 715, 30 July-12 August 2025.
- “Microsoft extending Windows 10 support is a ‘blatant trick’.” Computeractive, Computeractive – Issue 715, 30 July-12 August 2025.
- “Will It Be Safe to Use a Windows 10 Laptop with My TV?” Computeractive, Computeractive – Issue 715, 30 July-12 August 2025.
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