Microsoft began increasing Windows 11 OEM licensing fees by 7% to 10% starting July 2026, with higher fees applied to PCs using higher-end processors [1, 2, 3, 4, 5]. A PC brand executive told PC Gamer that this represents a significant jump from previous years, when licensing fees rose mostly by single digits annually [2].
The higher licensing fees are expected to drive PC retail prices up by roughly 5% during 2026, as manufacturers pass on costs to consumers [1, 3, 5]. Leading PC makers like Asus and Acer have already warned of further price hikes, with Asus citing a 30% increase compared to late 2025 due to both hardware and software cost pressures [1, 3].
These licensing cost rises come amid ongoing global shortages of key hardware components including RAM and SSDs that have kept prices high [1, 2, 3, 4]. Despite the fee increase, Windows license costs remain a smaller share of a PC’s total cost compared to expensive components like processors and memory [1].
Some OEMs have started reflecting the increased Windows licensing fees in consumer prices, adding further upward pressure to PC costs [2, 4, 5]. Meanwhile, Microsoft’s overall revenue grew 18% even as its Xbox division saw weaker performance this year [2].
Some Windows 11 users have reported performance issues, which Microsoft plans to address with fixes scheduled by the end of 2026 [3].
PC manufacturers are expected to implement the planned 5% retail price increase throughout the third quarter of 2026 in response to rising hardware and software expenses [1, 3, 5].
