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Microsoft Windows 12 Could Require a Subscription

The company could swap to an SaaS model for its upcoming operating system.
By Josh Norem
Windows 11
Credit: Microsoft

In the good old days, we bought a piece of software and ran it on our computer for as long as we wanted. We didn't have to sign up for anything, connect to the internet to use it, or keep paying for it over time. However, that business model has become endangered. Software companies realized they'd make more money over time with a subscription model than a one-time fee (we're looking at you, Adobe). Microsoft is apparently considering this approach for Windows 12, which is likely due in 2024. If this pans out, exactly nobody would be surprised about this change, and we imagine almost everybody would be outraged by it as well.

Some hints about Microsoft's ambitions for Windows 12 have been dug up by a German website named Deskmodder. The website combed through the INI files of the most recent Canary build of Windows 11 and the recently launched 23H2 update and spotted a few glaring differences. As noted by Neowin, there are multiple references to a subscription model in the latest Canary build, which one could call a canary in the coal mine. The lines of code refer to a "subscription edition" of Windows, a "subscription type" that refers to a device-based or user-based model, and another line that displays the subscription status, e.g., expired, active, etc.

Subscription refernces in INI files
Microsoft has begun dropping lines of code referring to subscriptions, possibly meaning the end of its pay-once model is nigh. Credit: Deskmodder

It's unclear what Microsoft's intentions are with a subscription model, but it would make sense to move to this model to increase its revenues by requiring monthly payments. In the past, the company has offered it as a "free upgrade" for owners of the previous version, so the upgrade path might go away if this change is made, though we imagine there will be heavy resistance to the notion.

Another problem Microsoft has is that Windows isn't very expensive if you buy a license. The company sells Windows 11 Home for $139, but deals abound that reduce that price to around $20, making a $9.99-per-month subscription something that wouldn't make much sense in the long term for most people. Regardless, it's also possible Microsoft will offer two versions: one run locally and one run from the cloud that can be used on multiple devices for a monthly fee. This could be a boon for folks who use a desktop and a laptop, as they'd be using the same OS installation on both machines.

Another factor influencing Microsoft along these lines is the rise of AI. Last week, it just added its AI assistant, Copilot, to Windows 11. Intel's upcoming Meteor Lake CPUs also include AI hardware, as both companies hope to become the gold standard in a new age of AI-based computing. Since most AI runs in the cloud today, it would not surprise us if Microsoft moves in this direction. As Neowin notes, the company has already stated it's attempting to migrate Windows 11 into the cloud.

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