A growing number of major technology companies are raising prices on devices and gaming consoles, with industry leaders pointing to the rapid expansion of artificial intelligence as a key factor driving up costs.

For years, consumers benefited from a predictable trend in the tech industry: older devices gradually became cheaper as newer models were released. That pattern now appears to be shifting, with prices stabilising—or in some cases increasing—across product lines.

Companies including Apple and Microsoft’s Xbox division have recently increased prices on older tablets, laptops, and gaming hardware, breaking from the traditional cycle of price reductions.

Industry executives say the increases are being driven by rising costs for critical components used in electronics manufacturing. At the centre of the issue is growing demand for chips and memory used in AI data centres.

As artificial intelligence systems expand globally, data centres require vast quantities of high-performance chips to process compute-intensive workloads. This surge in demand has significantly tightened supply chains for key components used not only in AI infrastructure but also in consumer electronics.

One of the most affected areas is random access memory (RAM), a core component in computers and gaming systems. Once considered inexpensive and widely available, RAM prices have surged so sharply that some analysts have described the situation as “Ramageddon.”

While manufacturers attribute the price increases to supply shortages linked to AI-driven demand, consumers have expressed frustration at rising costs for devices that are only marginally updated or several years old.

Apple has reportedly raised prices on some tablets and laptops by nearly 20%, adding to concerns that the cost of consumer electronics may remain elevated as long as demand for AI infrastructure continues to grow.

The shift marks a potential turning point for the tech industry, where rapid innovation has traditionally been accompanied by falling prices—rather than the current trend of sustained or increasing costs.