Technology

Memory shortage lifts prices for Macs, Surfaces, Xbox and Steam Machine

Apple, Microsoft, Xbox and Valve are raising prices or cutting memory as demand for RAM and storage squeezes consumer hardware.

Hana Yoshida

By Hana Yoshida · Markets Reporter

3 min read

Memory shortage lifts prices for Macs, Surfaces, Xbox and Steam Machine
Photo: The Verge

A shortage of memory and storage components is pushing up the price of computers, tablets and game hardware, according to The Verge. The squeeze is hitting buyers through higher sticker prices, lower base specifications, or both.

The latest round includes moves by Apple, Microsoft, Xbox and Valve, each tied in different ways to more expensive components. The Verge reported that demand from AI data centers is a major factor, as consumer hardware makers compete for parts with companies building large-scale computing systems.

Valve’s Steam Machine starts above $1,000

Valve opened the week by setting a price for the Steam Machine, its console-like PC, The Verge reported. The base version starts at $1,049 with 512GB of storage and no controller, while adding a controller costs $79 and the 2TB model adds $300.

The Verge said its testing found Steam Machine performance comparable to a PlayStation 5. The publication also noted that the entry price is nearly twice that of the six-year-old PS5.

Valve had previously said the component shortage forced it to change its pricing plans, according to The Verge. Asked by PC Gamer what he would alter about the Steam Machine, Valve engineer Yazan Aldehayyat answered: "Make it cheaper."

Surface prices fall only after memory is cut

Microsoft added lower-cost Surface options this week, The Verge reported, but the cheaper models come with less RAM. The 12-inch Surface Pro now starts at $849, and the 13-inch Surface Laptop starts at $949.

Those models include 8GB of RAM instead of 16GB, according to The Verge. The publication reported that the prior base versions of those devices had recently climbed to $1,049 and $1,199 as part of earlier Surface price increases.

Apple and Xbox raise prices

Apple also raised prices across multiple product lines, including MacBooks, iPads, the HomePod and Apple TV, The Verge reported. The MacBook Neo, cited by the outlet as previously starting at $599, now begins at $699.

Apple told Bloomberg that the increases reflected component cost pressures at a scale the company had "never seen," driven by the data center boom. The statement links Apple’s consumer price increases directly to a broader fight for memory and related parts.

Microsoft’s Xbox unit announced console price increases of $100 or more, according to The Verge. The Xbox Series S, now six years old, starts at $499.99 after the change.

In a blog post, Microsoft blamed the component shortage and said console storage and memory prices have risen by more than 2.5 times. Microsoft also said it expects those prices to double again by fall 2027.

AI data centers are adding pressure

The Verge reported that the AI data center buildout is a central cause of the component crunch. Companies buying parts for consumer devices are competing with AI firms and hyperscalers that may be willing to pay more for limited memory and storage supplies.

Valve described that pressure in an interview cited by The Verge, saying suppliers may "never talk to us again" if the company refuses prices on offer. The publication reported that RAM and SSDs remain in short supply, suggesting the higher prices may last beyond the current product cycle.

The result, according to the reported pricing changes, is a tougher market for people buying laptops, tablets, consoles or gaming PCs. Consumers are seeing more expensive devices at the same time some manufacturers are trimming base specifications to keep entry prices lower.

This story draws on original reporting from The Verge.