It’s a mixed bag. Solo users who were previously capped at 1TB now get twice the storage to play with, and anyone who was sharing with only one other person isn’t facing a huge difference. But if your account was split between three or more users, it’s a big downgrade.
What stings the most is that Microsoft isn’t adjusting the pricing on any of the plans. Microsoft 365 Family remains $12.99/month or $129.99/year, while Premium stays $19.99/month or $199.99/year. Meanwhile, Microsoft 365 Pro is a whopping $99.99/month with no annual option.
On this support page regarding the change, Microsoft makes it clear that it’s one shared storage amount: “The primary subscriber and up to five additional members draw from the same shared storage pool.” However, that doesn’t mean access is shared between all users: “While storage quotas are shared, files remain private.”
And you can expand the size of the storage pool with add-on purchases. It doesn’t sound like individual users can boost their own individual caps, but rather only contribute to the shared cap: “Storage add-ons purchased by subscription members are automatically added to the shared pool. Eligible family members’ free storage grants also contribute to the shared pool.”
The non-shareable plans remain unchanged: Microsoft 365 Basic gets 100GB of storage for $1.99/month or $19.99/year, while Microsoft 365 Personal gets 1TB of storage for $9.99/month or $99.99/year.