Xbox, Nintendo and Apple raise device prices, blaming AI-driven surge in chip costs

Microsoft's Xbox, Apple, Nintendo (Switch 2), and Valve (Steam Deck) are among the technology companies raising prices for devices and games consoles, citing rising costs for random access memory (RAM) caused by surging demand from AI data centres. The phenomenon, dubbed 'Ramageddon' by critics, reflects how compute-hungry AI infrastructure is outstripping chip supply, driving up component costs for consumer electronics including products that are several years old. Consumer advocates and observers have challenged the framing, noting that big tech's AI investment decisions are effectively being passed on as costs to ordinary buyers.