Microsoft 365 Family Cuts OneDrive From 6TB to a Shared 2TB at the Same Price
New and upgraded plans moved to the pooled model on October 8. Existing Family and Premium subscribers follow at their first renewal on or after May 2, 2027.
Microsoft has cut the OneDrive storage included with Microsoft 365 Family and Premium from up to 6TB to a single 2TB pool shared by everyone on the plan. The new model applies to new and upgraded subscriptions from October 8, 2026, and existing subscribers move over at their first renewal on or after May 2, 2027 (PCWorld, Digital Citizen).
What changes
| Plan | Before | After | US price (unchanged) |
|---|---|---|---|
| Microsoft 365 Family | 1TB each for up to 6 people (up to 6TB) | 2TB shared pool | $12.99/month or $129.99/year |
| Microsoft 365 Premium | 1TB each for up to 6 people | 2TB shared pool | $19.99/month or $199.99/year |
| Microsoft 365 Pro | - | 5TB shared pool for up to 6 | - |
| Basic, Personal | Individual allocation | Unchanged | - |
For a full six-person household that is a two-thirds cut, a loss of 4TB. Shared storage does not mean shared files: each person's content stays private unless they choose to share it. The effect depends on household size. A single user effectively gains, going from 1TB to 2TB; two-person plans see little difference; households of three or more with heavy users are hit hardest (Help Desk Geek). Family cost $99.99 a year before Microsoft's 2025 price rise.
When it hits existing subscribers
New and upgraded subscriptions get the shared model immediately. Existing Family and Premium subscribers generally keep their individual allocations until their first renewal on or after May 2, 2027. One report notes that some other Microsoft documentation gives April 1, 2027, so check your own renewal notice. Upgrading early, for example from Family to Premium, can trigger the change sooner; downgrading does not by itself.
Windows Central suggested that renewing before the cutoff might keep the old allowance longer, but Microsoft has not confirmed that reading.
What Microsoft says
Microsoft presents the change as offering greater flexibility, with storage allocated automatically to the people who need it. It has not tied the reduction to AI data centre costs or given another reason. Some existing customers in supported markets may get bonus storage at no extra cost, though eligibility varies and no amount is specified; that detail comes from one outlet. Microsoft says it will notify customers before the change.
Extra storage and overage
Eligible subscribers can buy more storage, up to 10TB in total, and member-purchased add-ons count toward the pool. Users nearing the limit get notifications, and files stay accessible for up to a year after going over the limit while the owner clears space or buys more.
The reaction
Subscribers are unhappy. Windows Central readers have complained and some plan to cancel, and a Reddit campaign urges people to turn off auto-renewal and cite the storage cut in cancellation surveys. Microsoft has not said whether it will reconsider. The plans are sold in India too; Microsoft has not said whether Indian pricing or timing differs.
What to watch next
Microsoft's customer notifications, any bonus storage offers, and clarification of the May 2 versus April 1, 2027 date.
