Microsoft Concedes Surface Prices Are Too High By Launching An $849 Downgrade

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Hardware makers launching new products are in a tough spot with the soaring costs of memory and storage that’s being driven by the insatiable demand of AI data centers. That includes larger companies such as Microsoft, which recently introduced new models to its lineup of Surface devices, but has had to make an audible to offer its machines at a more attractive price point.

When the company refreshed the Surface Pro and Surface Laptop with Qualcomm’s Snapdragon X2 chips last month, the devices were in the neighborhood of $1,500, and that was just for the starting configurations. However, in a world where the MacBook Neo exists, even after its price bump earlier today, this kind of pricing was always going to be a heavy lift in the consumer market.

Moreover, Intel’s Project Firefly is looking to provide a Windows powered answer to the MacBook Neo. It’s an Intel led effort...

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