Microsoft 365 Family plans now come with 4TB less of OneDrive storage than they did until this week. Microsoft details the change in a support document.

That document frames the change as a positive because it means storage is allocated to users who need it automatically, but the public has had a different reaction. I've received several messages from disappointed users, and other outlets are rightly highlighting consumer outrage. Some people I know have already said they plan to cancel their subscription due to the change.

Regardless of how much storage an individual family actually uses, Microsoft 365 Family now includes substantially less cloud storage than it did before while costing the same amount.

I keep track of the best Microsoft 365 deals and update my piece with discounts regularly. If you know when to hunt, you can get a year of Microsoft 365 Family for $99.99 despite the normal price being $129.99 (the price of Microsoft 365 went up in January 2025). But with the massive 4TB reduction in OneDrive storage, there is no way to retain the value of Microsoft 365 Family. Even if you got it at a discount, you'd be getting less than before.

Considering Microsoft can roll out this change immediately for new and upgraded subscriptions, I understand why some people may hesitate before subscribing to Microsoft 365. Based on the Microsoft support document, Microsoft 365 Family plans will be moved to the shared storage model upon your first renewal on or after May 2, 2027 .

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