Microsoft Accused of Fueling PC Price Hikes Through Secret License Fee Increases

A report from Taiwan's United Daily News suggests that Microsoft is contributing to rising PC prices by increasing the cost of Windows licenses. According to a 'PC brand executive', Microsoft has raised license fees by an average of 7% to 10% this year, which could already be affecting computer prices. The increases began in July and may give PC makers cover for raising prices.

Microsoft charges $139 or $199 for Windows licenses when you build your own PC. However, the company negotiates these prices directly with manufacturers, so they are not publicly disclosed. The current arrangement gives Microsoft significant pricing leverage over PC makers, as Windows is not interchangeable and manufacturers cannot easily switch to alternative operating systems.

Windows 11's August Update has also been released, which fixes hundreds of security vulnerabilities and brings improvements to performance and memory usage. However, the update does little to address concerns about rising PC prices, which may be driven in part by Microsoft's licensing model.