Microsoft Raises OEM Windows License Costs by 7-10%, Could Push New PC Prices Higher

New PCs could get pricier after Microsoft reportedly raised Windows OEM licensing costs for some manufacturers by 7% to 10%, with the increase said to have started in July. The higher fees apply to licenses for computers shipped with Windows preinstalled, adding pressure at a time when component prices are already climbing.

According to the report, PC makers are already folding the extra licensing expense into their product prices. Instead of absorbing the hit in their margins, Microsoft's partners are more likely to pass it on to buyers, so the final increase could vary from one brand to another.

One PC brand executive said Microsoft raises licensing fees for Windows OEMs every year, but the increases were usually only in single digits. This time, the average jump is said to be 7% to 10%, which the executive described as a significant change compared with previous years.

Microsoft also sets different terms for each partner, so not every device should move in lockstep. That means some companies' PCs may get more expensive than others, depending on how their individual pricing policies are shaped.

Windows 11 consumer pricing has not changed, with Home still at $99 and Pro at $199. Framework also said in its July pricing update that new laptop prices reflected higher Windows license costs alongside more expensive processors, memory, and storage, while one report says finished PC prices in Taiwan could rise by another 5% in the third quarter.

How much extra pressure do you think higher OEM Windows fees will put on budget and gaming PCs?