Microsoft 365 Price Hike in 2025: Is WPS Office a Smarter Choice? 

Overview: Another Price Increase from Microsoft

Microsoft has once again announced a price increase for Microsoft 365, leaving many users questioning whether the service is still worth its cost. The latest price hike is largely driven by the integration of Copilot AI, an AI-powered assistant that has now been bundled into all standard Microsoft 365 plans —even for users who may not want or need it.   

With these rising costs, many individuals and businesses are looking for cost-effective alternatives, and WPS Office has emerged as one of the top choices. Unlike Microsoft 365, WPS Office provides a free version with minimal ads and an affordable one-time purchase option, making it an appealing alternative.   

This article explores:

• ​​✅ Microsoft’s latest price increase and how it impacts users  ​ 
• ​​✅ The reasons behind Microsoft’s price hike ​ 
• ​​✅ Why users are frustrated with the forced AI integration ​ 
• ​​✅ How WPS Office provides a competitive and budget-friendly alternative

​Understanding Microsoft 365: What Makes It Popular? 

Microsoft 365 is a subscription-based office suite that includes well-known applications like Word, Excel, PowerPoint, Outlook, and OneDrive. It has replaced the traditional one-time purchase model with a monthly or yearly subscription, meaning users must pay continuously to maintain access.   

While Microsoft 365 is still the industry standard for many businesses, its rising costs and increasing AI integrations have left users searching for alternative office solutions.   

Breaking Down the Microsoft 365 Price Hike (2025 Update)

The new pricing structure will affect both individual and business users, making the cost of using Microsoft 365 significantly higher than before.   

Revised Pricing for Individual Users  Due to the Price Hike

• Microsoft 365 Personal: Now $9.99/month (Previously $6.99/month)   
• Microsoft 365 Family: Now $12.99/month (Previously $9.99/month)

Updated Pricing for Business Users Due to the Price Hike

• Microsoft 365 Business Standard: Now $14.99/user per month (Previously $12.50/user per month)   
• Microsoft 365 Business Premium: Now $24.99/user per month (Previously $22.00/user per month)

For companies with multiple employees, this increase translates to thousands of extra dollars per year, leading many businesses to reconsider whether Microsoft 365 is still the best choice.   

Why Is Microsoft Raising Prices?

1. The Forced Copilot AI Subscription

Originally, Copilot AI was an optional $30/month add-on, but due to lower adoption rates, Microsoft has now bundled it into all Microsoft 365 plans. This means that even if a user doesn’t need AI-powered features, they must still pay a higher subscription fee for Microsoft 365.   

2. The Push for Subscription-Based Revenue  

Unlike previous versions of Microsoft Office that users could buy once and use forever, Microsoft has fully shifted to a subscription model, ensuring that customers must continuously pay for access. This approach guarantees recurring revenue, but frustrates users who prefer one-time purchases.   

3. Microsoft’s Market Domination Strategy

By making Copilot AI a standard feature in Microsoft 365, Microsoft aims to dominate the AI-powered office software market. However, many users argue that this forced AI integration is unnecessary and makes Microsoft 365 unaffordable for many individuals and small businesses.   

The Downsides of Microsoft’s Free Version

Some users may consider using Microsoft’s free, ad-supported version of Office as an alternative, but it comes with major limitations:    

• It includes intrusive ads in Word, Excel, and PowerPoint, disrupting the user experience and making work less efficient.   
• Many essential features are locked behind a paywall, restricting what free users can do.   
• There is no offline access, meaning users must be connected to the internet at all times to work on their documents.   
• Files must be stored on OneDrive, limiting flexibility for users who prefer local storage.

Due to these drawbacks, Microsoft’s free version is not a practical solution for most users, leading them to explore other alternatives like WPS Office.   

Why WPS Office Is the Best Alternative to Microsoft 365

As Microsoft 365’s costs continue to rise, WPS Office has become an increasingly attractive alternative. Here’s why:   

1. No Mandatory AI Features

Unlike Microsoft 365, WPS Office does not force AI-powered tools onto users. This allows customers to only pay for the features they actually need, rather than being locked into expensive subscription plans.   

2. Seamless Compatibility with Microsoft Office

WPS Office supports all major file formats, ensuring smooth compatibility with Microsoft documents. It fully supports DOCX, XLSX, and PPTX, meaning users can open, edit, and save Microsoft Office files without any issues. Additionally, WPS Office offers built-in PDF editing and conversion features, eliminating the need for extra software.   

3. Flexible and Affordable Pricing

Unlike Microsoft 365, which requires ongoing monthly payments, WPS Office offers a free version with minimal ads and a one-time purchase option, removing the need for costly subscriptions. This makes WPS Office a far more budget-friendly choice for students, freelancers, and small businesses.  

4. Works Offline Without Restrictions

One of the biggest downsides of Microsoft’s free version is that it requires an internet connection for editing. In contrast, WPS Office provides full offline functionality, allowing users to work without interruptions, even when traveling or experiencing internet issues.   

Final Thoughts: Should You Stay with Microsoft or Switch to WPS Office?

Microsoft 365 continues to be a powerful office suite, but its rising costs and forced AI integration are driving many users toward alternatives.   

For users who require the latest AI-powered features, Microsoft 365 might still be the right choice—despite its higher costs. However, for those looking for an affordable, AI-free experience, WPS Office is the better option.   

WPS Office provides a free version with minimal ads, a one-time purchase option, full offline access, and seamless compatibility with Microsoft file formats. It is particularly beneficial for small businesses, freelancers, students, and anyone looking to reduce their software expenses.   

For those who no longer wish to be locked into Microsoft’s subscription model and AI-driven pricing, switching to WPS Office can result in significant savings without sacrificing productivity.   

Final Recommendation

• If you want AI-driven tools, Microsoft 365 remains an option—but expect to pay more due to the price hike.   
• If you need a cost-effective, ad-free office suite, WPS Office is the smarter choice.   
• If you run a small business, switching to WPS Office can save thousands of dollars annually.  

What’s Next?

If you’re considering making the switch in spite of the price hike, download WPS Office today and compare it with Microsoft 365 to see which one best meets your needs.