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Saturday, October 10, 2026

Microsoft 365 shrinks OneDrive storage for family plans

Technology Friday, October 9, 2026 · Updated Oct 9, 2026 21:55

Microsoft 365 is replacing the 1TB-per-user OneDrive allotment on Family, Premium and Pro tiers with shared pools of 2TB or 5TB, cutting up to 4TB of combined storage for fully loaded family accounts.

Why it matters: The cut lands on the accounts most likely to be over their new limits, and it revives the long-running tension between Microsoft's subscription pricing and the cloud storage that justified it.

Data as of The Register reporting October 9, 2026 (article opened and read in full). Microsoft's own support page was not opened directly; details come from the article's summary of it. Single-sourced.

Microsoft 365 subscribers on Family, Premium or Pro tiers who use their full OneDrive allotments are about to lose a lot of cloud storage. Under the old schema, each tier offered 1TB per user with a six-user cap, for a combined 6TB. The new quotas are shared pools: Family and Premium plans get 2TB to split among up to six users, and Pro gets 5TB, so a fully loaded Family plan loses up to 4TB of combined capacity.

Microsoft is selling the change as flexibility, since heavy users can now exceed the old 1TB per-person cap as long as the shared pool has room, and the company put subscription cancellation steps right on the support page announcing the change. New subscribers moved to the new schema on Thursday; existing subscribers get hit when their plans renew on or after May 2, 2027. The reaction on Reddit’s Microsoft365 community is uniformly hostile, with users saying they will cancel rather than renew into a smaller quota. It is not Microsoft’s first storage haircut: Office 365 once shipped unlimited cloud storage until abuse ended that, and education allocations were slashed in 2024.

Sources

  1. Microsoft 365 subscribers set to lose up to 4 TB of OneDrive storage · The Register · 2026-10-09