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Microsoft Office Prices Jump by Up to 46% in South Africa: What’s Behind the Hike

Published

3 hours ago

October 28, 2025

Chiraag

Microsoft Office price increase, Microsoft 365 South Africa, subscription costs 2025, Office apps Word Excel PowerPoint, Copilot AI, Game Pass South Africa, Joburg ETC

From Word to Wallet: Why Your Microsoft 365 Bill Is About to Jump

If you’ve opened an email from Microsoft lately, there’s a good chance it wasn’t about a new feature or app update. Instead, South Africans are finding renewal reminders in their inboxes, and the news isn’t cheap.

Microsoft 365 users across the country are seeing subscription costs climb by as much as 46%, part of a global price hike announced earlier this year. The new rates affect the Personal and Family plans, two of the company’s most popular packages for everyday users.

For example, the Microsoft 365 Family plan that costs R1 499 per year now sits at R1 999, while Personal subscriptions jump from R1 099 to R1 599. Monthly users will also feel the pinch, with increases ranging from R109 to R159 a month.

Why the Price Increase

Microsoft said the hike reflects “over a decade of added value” and ongoing investment in innovation. It’s the company’s first major price update for the U.S. market since launching Microsoft 365, though South Africans have faced smaller adjustments before due to the weakening rand.

This time, though, the biggest factor is artificial intelligence. Microsoft’s new Copilot AI assistant, a feature now integrated across Word, Excel, Outlook, and PowerPoint, is part of the push. The company says Copilot will change the way users write, calculate, and present by automating routine tasks and improving productivity.

For those who aren’t ready to pay more, Microsoft has introduced “Classic” plans. These offer the same core Office apps without Copilot or new AI functions. Classic subscriptions are available at the old 2023 rates, provided users manage the switch through their Microsoft account’s Subscriptions page.

Game Pass Players Feel It Too

The price changes don’t stop with Office. Microsoft has also rolled out a major overhaul of its Game Pass subscriptions, hiking prices across all tiers and reshuffling what’s included.

The entry-level Game Pass Core has been renamed Essential and now costs R139 per month (up from R99). The Premium plan rises from R149 to R199, but its game library has been halved from 400 to around 200 titles.

For die-hard gamers, the Ultimate tier, the only option offering full access to new “day one” releases and the complete 400-title library, now costs R349 per month, up from R199.

Meanwhile, PC gamers are hit the hardest: the PC-only Game Pass subscription has jumped a staggering 109%, leaping from R119 to R249 a month.

The irony is that South African users are still paying global rates even though some features, like cloud gaming, remain unavailable locally.

What This Means for South Africans

Microsoft says the changes are meant to “future-proof” its platforms, but for many South Africans, they represent yet another monthly cost climbing faster than wages.

While Office remains an essential tool for students, professionals, and small businesses, the higher prices may push some toward free or open-source alternatives. Others might switch to the new Classic plans or reconsider their Game Pass tier entirely.

Either way, Microsoft’s latest update marks a clear shift in strategy: less about software ownership and more about ongoing subscription revenue, a trend that’s changing how South Africans access and pay for their digital tools.