Cheaper Office 365 'Personal' Microsoft Launches

Microsoft knows that its Office software isn't quite as crucial as it once was. But its decision to launch a cheaper Office 365 'Personal' for $70 a year is perplexing at best.

Office 365 Personal can be installed on just one PC and one tablet. For those who don't necessarily need the productivity suite on a regular basis, they can opt to pay Microsoft (MSFT, Fortune 500) $7 a month for the service.

Microsoft introduced Office 365 to consumers in January 2013. The subscription service allows customers to get frequent software updates, ensuring that they always have the latest version of Office installed on their computers and tablets.

Sales been promising: Microsoft sold Office 365 to 3.5 million consumers in 2013. But the company admitted a dip in sales during its Q1 earnings report, which was probably a key motivator for the launch of "Personal."