Tech Companies Raise Console and PC Prices, Blame AI

The long-standing expectation that technology becomes more affordable as it ages is beginning to fade. Instead of dropping prices on older products, several major manufacturers are charging customers more, even for devices that have been on the market for years. 

Apple recently increased prices across parts of its MacBook and iPad lineup, with some models rising by almost 20%. Shortly afterward, Microsoft confirmed another round of price increases for its Xbox Series S and Series X consoles, despite both systems having been available for about five years. Beginning in August, some Xbox models will cost at least $100 more, marking the company’s third increase in just over a year. 

The announcements have sparked frustration among consumers, many of whom question why aging hardware is becoming more expensive instead of cheaper. Online reactions have ranged from disappointment to disbelief, with gamers arguing that future consoles could become unaffordable if the trend continues. 

Technology companies say the main reason is the soaring cost of memory chips and other essential components. Industry analysts point to the rapid expansion of AI as the driving force behind the shortage. Massive AI data centers require enormous quantities of advanced chips, placing unprecedented pressure on global supply chains. 

Random access memory (RAM) has become one of the clearest examples of this shift. Once considered an inexpensive component, memory prices have climbed sharply as AI companies compete aggressively for available supply. Research from Counterpoint shows that the cost of certain 32GB DDR5 memory modules more than doubled within months before surging even higher during early 2026. 

Analysts say the world’s biggest technology firms are investing hundreds of billions of dollars in AI infrastructure, leaving manufacturers struggling to meet demand. Companies operating large data centers often secure long-term supply agreements and are willing to pay premium prices, giving them priority over manufacturers producing consumer electronics. 

The pressure is affecting more than Apple and Microsoft. Nintendo has announced plans to raise global prices for the Switch 2 later this year, while Valve introduced its latest Steam Machine gaming PC at a higher-than-expected price after citing increased manufacturing costs. The company also raised Steam Deck prices earlier this year. 

Experts note that inflation and geopolitical uncertainty have also contributed to rising production costs, despite widespread recognition of AI-related demand as the primary factor. Sony previously blamed challenging global economic conditions when increasing PlayStation 5 prices in several markets. 

Despite criticism from consumers and politicians, analysts believe elevated prices may continue for some time. Counterpoint Research expects tight memory supplies could persist for up to two years. While chip manufacturers such as Micron have benefited from booming AI demand, executives warn that production still cannot keep pace with global consumption, suggesting technology buyers should prepare for continued high prices. 

It remains to be seen how entities in the gaming niche like Core AI Holdings Inc. (NASDAQ: CHAI) will be affected by the rising prices of memory chips even if their operations don’t involve the production of physical components to be used on their platforms. 

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