Microsoft raised Xbox prices because Apple raised MacBook prices. That's the entire strategy. Apple moved first so Microsoft figured it could hide behind them like a kid sneaking through a door someone else opened.
Soaring component costs. That's what they're calling it. Components have been soaring for three years now. They've been soaring so long they've achieved orbit. But Microsoft waited until Apple made the move because God forbid they look like the bad guy alone.
The Xbox Series X now costs more even though you still can't find games worth playing on it. You're paying extra for the privilege of waiting for exclusives that may or may not ship before the heat death of the universe. Incredible value proposition. Really selling itself.
Apple announces price hikes on Tuesday. Microsoft announces them on Wednesday. What a coincidence. What perfect timing. Almost like they had the statement drafted and were just waiting for cover. Almost like every major corporation operates exactly this way and pretends market forces made them do it.
The component costs are real. The timing is calculated. Microsoft could have raised prices six months ago when those costs actually started soaring but they sat on their hands until someone else went first. That's not a supply chain problem. That's cowardice with a press release.
Retail traders will see this news and somehow decide it's bullish. They'll post on Reddit about how this proves pricing power. They'll say it shows Microsoft has strong margins. They'll convince themselves that paying more for the same product is actually good for them as consumers and investors. They'll type all of this on their newly expensive MacBook and feel like geniuses.
Microsoft followed Apple's lead because they always do. The only difference is Apple makes you feel cool about getting robbed.
Photo by Jonathan Kemper on Unsplash
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