Microsoft Hikes PC Licensing Fees by Up to 10%, Prices May Rise

Microsoft has increased its licensing fees for PC original equipment manufacturers (OEMs) by an average of 7% to 10%, starting in July 2026.

The change affects OEM pricing, which is based on a sliding scale determined by shipping volumes and internal hardware specifications. Key factors driving the OEM fee structure include Hardware Tiering: Processor class, RAM capacity, and display specifications influence the license tier, as well as Volume Discounts: Major global brands receive preferred volume pricing compared to smaller regional system integrators.

The 10% increase applies directly to the underlying OEM fees, which will lead to noticeable cumulative cost increases across larger manufacturers' product catalogs. Industry analysts expect a modest price increase of roughly 3% to 5% on complete pre-built systems entering retail channels later this quarter.

Individual builders purchasing standalone retail licenses for Windows 11 Home or Windows 11 Pro will see no price changes, with standard retail keys remaining at $139 and $199, respectively.