Microsoft To Offer Office On Subscription Basis

July 3, 2008 3:45 p.m. EST

Seattle, WA (AHN) - Consumers reluctant to pay $200 for Microsoft Office will have a new option starting later this month. The software giant plans in mid-July to offer subscriptions for the popular application bundle at $70 per year.

The subscription of Microsoft Equipt includes the usual Word, Excel, PowerPoint and OneNote office applications along with the slower-selling OneCare security offering. Reports said the software giant will also include a number of free Windows Live services.

Bryson Gordon, who manages the Office group, told the AP the subscription is designed to attract computer users that don't upgrade the application suite or use pirate the software bundle.

However, others see the Office subscription as Microsoft's first steps toward initiating consumers into a business model already familiar with corporate users.