Microsoft Issues Apology for Mistaken Software Pricing
- Microsoft acknowledged errors in pricing published on April 1
- Corrections were made by April 4 and are reflected in updated documentation
- The 5% increase in prices applies solely to monthly subscriptions
Recently, Microsoft has admitted to a significant mistake in pricing for several key software products. The company publicly acknowledged this error after posting incorrect prices on April 1. To address the issue, Microsoft updated the information three days later, on April 4, and apologized for misleading “all Cloud Solution Provider (CSP) Partners.”
Details of Microsoft’s Pricing Errors
The incorrect pricing primarily affected the annual commitment monthly billing plans for Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Service. These listings did not accurately represent price adjustments that were initially announced in November 2024.
In a communication regarding these errors, Microsoft stated, “The April license-based price lists that was released on April 1, 2025, included incorrect pricing for annual commitment monthly billing plans for Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Service.” According to this statement, prices should have reflected a 5% increase for those on monthly billing, consistent with a previous announcement made in December 2024 about flexible billing options for Microsoft 365 Copilot.
Originally, in November 2024, Microsoft indicated plans to raise prices for these Copilot versions by around 5%, with potential minor variations based on local currencies. Additionally, other services, including Microsoft 365, Office 365, Enterprise Mobility + Security, Windows 365, Microsoft Dynamics 365 Services, Microsoft Power Platform, and various online services saw similar increases. A notable price hike included a $10/month increase for Teams Phone, marking its first adjustment since the service’s launch in 2017.
For consumers looking to avoid these increases, it was suggested that opting for annual billing could be beneficial, as the 5% price hike impacts only monthly subscription plans. Although flexible monthly billing has its advantages, it comes with a price—literally.
As of now, the support page confirms that corrections to the price errors have been successfully updated in the Partner Center catalog. Revised price lists are readily available for users to download, ensuring that all partners and customers have the most accurate information moving forward.
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