What you get with a Microsoft subscription

Microsoft subscriptions give you access to software and cloud services on a monthly or yearly basis instead of buying them outright. The main subscriptions are Microsoft 365 (which includes Word, Excel, PowerPoint, and Outlook), Xbox Game Pass, OneDrive cloud storage, and Microsoft Copilot Pro. Each one serves a different purpose, and you can use them separately or stack them together.

The cost and what's included depends on which subscription you choose. Microsoft 365 for personal use starts at one price point and goes higher if you want versions for a household or a small business. Xbox Game Pass ranges from a basic tier to a premium tier with more games. OneDrive storage can be purchased standalone or comes bundled with Microsoft 365. Understanding which subscription matches your actual needs prevents you from paying for features you won't use.

Key Takeaways

  • Microsoft 365 includes Word, Excel, PowerPoint, Outlook, and cloud storage, with different pricing for individuals, families, and businesses.
  • Xbox Game Pass offers access to hundreds of games on console, PC, and mobile, with a standard tier and a premium tier that includes day-one access to new releases.
  • OneDrive cloud storage can be purchased as a standalone subscription or comes included with Microsoft 365 at no extra cost.
  • Microsoft Copilot Pro is a separate subscription that gives you priority access to advanced AI features across Microsoft products.
  • You can cancel or pause most Microsoft subscriptions at any time through your account settings without penalty.

Microsoft 365 for individuals and families

Microsoft 365 Personal is the subscription for one person. It includes the full desktop versions of Word, Excel, PowerPoint, and Outlook, plus 1 TB of OneDrive storage and access to Microsoft Editor (a writing assistant). You install it on up to five devices at once, though you can only use it on one device at a time. The subscription renews monthly or yearly depending on which plan you choose at purchase.

Microsoft 365 Family is for households with up to six people. Each person gets their own account, their own 1 TB of OneDrive storage, and the same desktop applications. You set it up by inviting family members through your Microsoft account, and they each sign in with their own credentials. This option costs more per month than Personal but works out cheaper per person if you have multiple people in your household who need Office.

Both subscriptions include access to the online versions of Word, Excel, and PowerPoint through Microsoft.com, so you can edit documents in a web browser without installing anything. They also include 60 minutes of Skype calling per month to phone numbers in over 60 countries, though this is rarely the main reason people buy the subscription.

Xbox Game Pass and gaming subscriptions

Xbox Game Pass is a subscription to a library of games rather than individual game purchases. The standard tier gives you access to hundreds of games on Xbox console and PC. The premium tier adds day-one access to new Microsoft game releases, cloud gaming (playing games on your phone or tablet without owning a console), and access to classic games from older Xbox generations. The price difference between tiers is significant, so the choice depends on whether you want new releases when ready or are happy playing from the existing library.

Xbox Game Pass for PC is a separate subscription that covers only PC games, not console games. If you own both a console and a PC, you would need both subscriptions to play across both platforms. Xbox Game Pass Ultimate bundles console Game Pass, PC Game Pass, and Xbox Live Gold (online multiplayer) into one subscription, which is the most comprehensive option if you game on multiple devices.

Games rotate in and out of the library throughout the year, so a game you can play today may not be available in three months. Microsoft announces which games are leaving each month, so you can decide whether to finish a game before it leaves or buy it permanently if you want to keep it.

OneDrive cloud storage

OneDrive is Microsoft's cloud storage service. If you have a Microsoft 365 subscription, you already get 1 TB of storage included. If you don't have Microsoft 365 but want cloud storage, you can buy OneDrive storage separately in 100 GB or 1 TB plans. The 100 GB plan is cheaper but fills up quickly if you store photos, videos, or large files.

OneDrive syncs files between your devices automatically. You can set it to sync everything or choose specific folders, which is useful if you have a laptop with limited storage space. You can also share files and folders with other people and control whether they can view only or edit. If you delete a file, it goes to the recycle bin for 93 days before being permanently deleted, giving you time to recover it if you change your mind.

OneDrive storage is separate from your email storage. If you use Outlook with a Microsoft account, your mailbox has its own storage limit, and OneDrive storage doesn't count toward it.

Microsoft Copilot Pro and AI features

Microsoft Copilot Pro is a subscription to advanced versions of Microsoft's AI assistant. It gives you priority access to the latest AI models, higher usage limits, and the ability to create custom GPTs (specialized versions of the AI trained on your own documents or instructions). You can use Copilot Pro in Bing, Microsoft Edge, Word, Excel, PowerPoint, and Outlook.

If you don't subscribe to Copilot Pro, you can still use Copilot for free in most Microsoft products, but with lower usage limits and access to older AI models. The paid version is worth considering if you use AI features heavily in your work or want to create custom AI tools for specific tasks.

How to manage and cancel subscriptions

You manage all Microsoft subscriptions through your account at account.microsoft.com. Sign in, go to "Subscriptions," and you'll see a list of everything you're currently paying for. From there you can view the renewal date, change the payment method, pause a subscription temporarily, or cancel it entirely.

Canceling a subscription stops the next renewal charge. You keep access until the current billing period ends. For example, if you cancel a monthly subscription on the 15th of the month, you keep access until the end of that month, then it stops. If you cancel a yearly subscription, you keep access for the rest of that year.

If you pause a subscription instead of canceling, the renewal charge is delayed for up to three months. This is useful if you want to take a break from a service but plan to come back to it later. When you're ready to resume, you can unpause it from the same subscriptions page.

Bundling subscriptions and saving money

Microsoft sometimes offers bundles that combine multiple subscriptions at a lower total price than buying them separately. For example, some promotions bundle Xbox Game Pass Ultimate with a few months of Game Pass for PC at a discount. These offers change frequently and are usually advertised when you're viewing subscription options.

If you use multiple Microsoft services, adding them up separately versus buying a bundle can make a real difference. Before you buy, check whether a bundle exists for the combination you need. You can also check whether your employer, school, or organization offers Microsoft subscriptions as a benefit — many do, and it's worth asking before you pay out of pocket.

Student discounts are available through Microsoft's education program if you have a valid school email address. The discount applies to Microsoft 365 and sometimes to other subscriptions. You verify your student status through your school email when you sign up.

Frequently Asked Questions

Can I use Microsoft 365 on more than one device at the same time?

You can install Microsoft 365 on up to five devices, but you can only be signed in and actively using it on one device at a time. If you sign in on a second device, you're automatically signed out on the first. The online versions of Word, Excel, and PowerPoint don't have this limit — you can use them in multiple browser tabs or on multiple devices simultaneously.

What happens to my files if I cancel Microsoft 365?

Your OneDrive files stay in your account for 90 days after your subscription ends. You can still view and read them during that time. After 90 days, your OneDrive storage is deleted. Your documents in Word, Excel, and PowerPoint can still be opened if you have a free Microsoft account, but you can't edit them without an active subscription.

Do I need Xbox Game Pass to play online multiplayer games?

On Xbox console, yes — you need either Xbox Game Pass Ultimate or Xbox Live Gold to play online multiplayer. On PC, it depends on the game. Many PC games don't require any subscription to play online. Check the game's store page to see whether it requires Xbox Live Gold or Game Pass.

Can I share my Microsoft 365 Family subscription with someone who doesn't live with me?

Technically, yes — you can invite anyone to your Family subscription by sending them an email invitation, and they can accept it from anywhere. However, Microsoft's terms of service state that Family subscriptions are intended for people who live in the same household. Microsoft doesn't actively enforce this, but they reserve the right to, so there's some risk in sharing with people outside your home.

How much storage do I actually get with Microsoft 365?

Microsoft 365 Personal and Family both include 1 TB of OneDrive storage per person. One terabyte is roughly equivalent to 250,000 photos or 500 hours of video, depending on the quality. If you need more, you can buy additional storage separately, or some plans allow you to upgrade to 2 TB or 6 TB for an extra monthly fee.