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Microsoft to double OneDrive free space, slash extra storage prices up to 73%

Gregg Keizer | June 24, 2014
Will also bump Office 365 Home, Personal subscribers' allotment to 1TB next month

"[The idea] is to add value to their own ecosystem," said Dawson at the time. "[And] I don't think it's about making money at all."

Instead, Dawson argued that companies charge for their storage space to create a mental commitment to the service. "It's more a psychological effect. Think of Amazon Prime. Because I'm already paying for it, I may as well buy from Amazon because I get free shipping. So I commit to it emotionally," Dawson said.

Microsoft will boost the default OneDrive storage space, and reduce prices for those paying extra, at some point next month. "For current subscribers, you are all set, you'll automatically be moved to the lower prices," said Shahine.

Consumer grade storage prices
Microsoft's new OneDrive prices will be much more competitive, equaling or beating all but Google's 1TB plan. (Data: Amazon, Apple, Dropbox, Google, Microsoft.)

 

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