<p>In the past, purchasing software meant a one-time fee and the freedom to use it without signing up or connecting to the internet. However, this model is being changed as software companies, aiming to increase revenue, are shifting towards subscription-based models. Microsoft is reportedly adopting this approach for its upcoming Windows 12 release in 2024.</p>
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<p>Microsoft&#8217;s intentions for Windows 12 have surfaced through investigations by the German website Deskmodder. The website identified references to a potential subscription model by analyzing the INI files of the latest Canary build of Windows 11 and the 23H2 update. These include terms like &#8220;subscription edition,&#8221; &#8220;subscription type&#8221; (device-based or user-based), and indications of subscription status (active, expired, etc.).</p>
<p>While Microsoft&#8217;s exact plans still remain unclear, a move toward a subscription model seems logical for long-term revenue generation. The company has previously offered free upgrades for existing users when transitioning to a new version, a practice that may change with a subscription-based model, that will possibly get resistance from users.</p>
<p>Microsoft faces the challenge that purchasing a Windows license is relatively inexpensive. For instance, Windows 11 Home is sold at $139, but discounts often drop the price to around $20. This makes a $9.99-per-month subscription less interesting to Windows users. However, to solve this, Microsoft might consider offering two versions: a local version and a cloud-based one that can be used on multiple devices for a monthly fee. This could be beneficial for both users with desktops and laptops, thus offering a unified OS experience.</p>
<p>Another factor that&#8217;s responsible for Microsoft&#8217;s decisions is the rise of AI. With the introduction of Copilot, an AI assistant, to Windows 11 and the integration of AI hardware in upcoming CPUs like Intel&#8217;s Meteor Lake, a change towards AI-based computing is evident. As AI often operates in the cloud, Microsoft&#8217;s potential move towards cloud-based Windows aligns with the trend of the industry.</p>