Computer and tablet prices surge due to component shortage

This week brought multiple announcements of tech hardware price hikes, affecting gaming PCs, laptops, and tablets. The component shortage, exacerbated by massive demand from AI data centers, is forcing manufacturers to revise their pricing.

Valve finally revealed the Steam Machine price, starting at $1,049, nearly double the price of the six-year-old PS5. The base configuration includes 512GB of storage and no controller; a controller adds $79, and the 2TB model costs an extra $300. Valve had warned that the component crisis forced it to change initial pricing plans. Engineer Yazan Aldehayyat told PC Gamer he wished the Steam Machine were cheaper.

Microsoft introduced cheaper Surface devices this week, but with a major drawback: RAM was halved from 16GB to 8GB. The 12-inch Surface Pro costs $849, and the 13-inch Surface Laptop costs $949. Previous base models had recently risen to $1,049 and $1,199 respectively.

Apple announced broad price increases across its lineup, including MacBooks, iPads, HomePod, and Apple TV. For example, the MacBook Neo rose from $599 to $699. Apple told Bloomberg that component costs have increased on a scale it has "never seen," primarily due to the data center boom.

Xbox announced console price hikes of $100 or more, with the Xbox Series S starting at $499.99. Microsoft blamed the component shortage in a blog post, stating that memory and storage prices have increased more than 2.5x and are expected to double again by fall 2027.

The price increases stem from competition for limited components between consumer devices and AI data centers. Valve noted in an interview that if it doesn't accept supplier prices, they might never do business again. Experts suggest these higher prices are not temporary but a new reality, as hyperscalers continue massive investments in AI infrastructure.