Big Tech warns gaming prices will get worse

Microsoft and Apple announced price hikes for many of their products this past week, meaning you'll be paying a lot more for Xbox consoles, iPads, and Mac computers in the coming months. Both companies pointed to soaring component costs driven by demand from AI data centers.

Microsoft said "console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027." Apple told MacRumors: "The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage.

We have never seen a component price increase this much, this quickly." Other industry voices offered a bleak outlook. Lenovo executive director Martin Hiegl said prices will "never" come back down to where they were just a year or two ago.

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