The lawsuit, filed Friday in a federal court in California, alleges that OpenAI encouraged Apple employees it recruited to share confidential information and even advised them on how to avoid detection when moving to the company. Apple argues that the alleged conduct gave OpenAI an unfair advantage in building its emerging hardware business.

“This case is about Apple’s former employees stealing Apple’s trade secrets for the benefit of OpenAI,” the complaint states. “Apple brings this suit to put a stop to it.”

OpenAI said it is reviewing the lawsuit. In a statement, spokesperson Drew Pusateri said the company has “no interest in other companies’ trade secrets” and remains focused on developing technology that benefits users.

Apple targets former executives and OpenAI hardware unit

The lawsuit names OpenAI, its hardware subsidiary io Products, and two former Apple employees as defendants.

One is Tang Tan, who previously helped design the iPhone, Apple Watch and iPod before becoming OpenAI’s chief hardware officer. The other is Chang Liu, a former Apple electrical engineer whom Apple said worked on some of its most sensitive hardware development projects before joining OpenAI earlier this year.

According to the complaint, Apple launched an internal investigation after suspecting that confidential information had been compromised. The company said it discovered what it described as “a pattern of theft” involving former employees who later accepted positions at OpenAI.

Apple alleges that Liu accessed and downloaded confidential hardware-related files using an Apple-issued device that he retained after leaving the company. It also claims Tan instructed prospective OpenAI recruits who were still employed by Apple to bring “Actual parts” from Apple to job interviews.

The lawsuit further states that Apple contacted OpenAI in February to raise its concerns during the early stages of its investigation but received no response.

An Apple spokesperson said the company will “always defend our teams’ hard work and innovations, and we are taking all appropriate steps to do so.”

Dispute centers on OpenAI’s hardware ambitions

The legal action strikes at the center of OpenAI’s expanding hardware strategy, an area the company has publicly described as an effort to develop new ways for people to interact with artificial intelligence beyond traditional computing devices.

While OpenAI has not disclosed the exact nature of the product under development, the lawsuit argues that its hardware initiative relies in part on confidential Apple information.

Apple claims OpenAI’s hardware business “rests on the shakiest of foundations,” alleging that the project benefited from improperly obtained trade secrets.

The dispute comes as technology companies increasingly compete to define the next generation of AI-powered consumer devices, building on advances in generative artificial intelligence that followed ChatGPT’s rapid adoption.

Former partners increasingly compete in artificial intelligence

The lawsuit highlights how Apple’s relationship with OpenAI has shifted from collaboration toward direct competition.

The companies partnered in 2024 to integrate ChatGPT into the iPhone as an AI-powered assistance feature when Siri could not adequately answer user requests.

Since then, OpenAI has expanded its hardware ambitions by recruiting former Apple designer Jony Ive to lead development of a new AI-focused device. Last year, OpenAI announced a confidential hardware collaboration with Ive aimed at creating a new interface for interacting with artificial intelligence.

As part of that effort, OpenAI acquired io Products, a product and engineering company co-founded by Ive, Tan and two others, in a transaction valued at nearly $6.5 billion.

The acquisition also prompted separate litigation. Startup iyO Inc. sued Ive and OpenAI Chief Executive Officer Sam Altman for trademark infringement over the similarity between the names “io” and “iyO.” The company also sued a former employee over the alleged disclosure of confidential product drawings and later added trade secret theft claims against Tan.

Legal challenge arrives amid broader competitive pressure

Apple’s lawsuit comes as OpenAI continues to reshape its business while facing growing competition from AI rivals including Anthropic and Google.

Although OpenAI narrowed some of its business initiatives earlier this year to concentrate on ChatGPT, the company has maintained its commitment to developing consumer hardware.

Speaking to The Associated Press in April, OpenAI Chief Financial Officer Sarah Friar said the company expects to introduce consumer hardware toward the end of this year.

The outcome of Apple’s lawsuit could influence not only the relationship between the two companies but also how aggressively technology firms recruit talent and protect intellectual property as competition in the AI hardware market intensifies.

This report is based on reporting by The Associated Press.

Article Topics: Apple | OpenAI | Trade Secrets | Artificial Intelligence | Consumer Hardware | Intellectual Property | Corporate Lawsuit

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While Apple’s AI-powered Siri overhaul drew attention at its Worldwide Developers Conference earlier this month, the company is positioning a wider approach that embeds Apple Intelligence directly into existing apps and workflows rather than relying on a single conversational interface.

The result, based on Apple’s developer materials and early beta behavior described by TechCrunch, is a series of incremental automation tools aimed at reducing manual input across everyday tasks such as messaging, payments, browsing, password management, and device notifications.

Rather than introducing a standalone AI product experience, Apple is integrating machine learning functions into system utilities and core apps already used by iPhone customers.

AI embedded into everyday iPhone workflows

One of the most visible additions is a bill-splitting feature integrated with Apple Cash. The system can extract receipt data from photos or uploads, identify line items, and calculate shared costs including tax and tip. Users can then assign items to individuals within a group chat in Messages before initiating payment.

In security-focused updates, Apple is also introducing an automated password update function. The feature identifies weak or compromised credentials—such as those exposed in data breaches—and can navigate supported websites to replace them with stronger alternatives without requiring manual intervention.

Messages is also gaining contextual suggestions powered by Apple Intelligence. These one-tap prompts are designed to interpret conversation intent and recommend actions such as adding reminders, sharing photos from events, or creating calendar entries based on discussion context.

System-level context and automation features

Another addition, described as “Call Context,” surfaces relevant information during phone calls with customer service representatives. For example, confirmation codes linked to travel bookings stored in Mail may appear directly on the call screen. Apple’s design approach, as outlined in the TechCrunch reporting, emphasizes on-device processing for these features.

The Calendar app is also receiving natural language input support, allowing users to create or modify events through conversational descriptions. Apple Intelligence extracts relevant details such as dates, locations, and contacts to populate event fields automatically.

Meanwhile, the Shortcuts automation tool is being redesigned to accept natural language instructions. Instead of building workflows manually, users can describe desired outcomes—such as automating routines based on calendar schedules or triggering actions when connecting accessories.

Interface cleanup and background intelligence

Apple is also applying AI-driven grouping to reduce notification overload in the Home app. Instead of sending multiple alerts for related smart home events, the system consolidates them into a single contextual notification describing the overall activity.

The Photos and Home integration also enables improved search and clip retrieval for events such as deliveries or home activity footage.

In Safari, Apple Intelligence introduces tab organization that groups open pages based on inferred topics. For example, browsing sessions related to travel planning may be automatically clustered into a single tab group, improving navigation across sessions.

Apple emphasizes that, according to TechCrunch, Safari’s organization features are designed with privacy considerations in mind and avoid exposing browsing data externally, including to Apple.

A distributed approach to consumer AI

Taken together, the iOS 27 updates reflect a shift toward distributed AI functionality embedded across the operating system rather than centered in a single assistant interface. While Siri remains a headline feature in Apple’s AI roadmap, these incremental tools suggest a broader attempt to normalize automation within everyday device interactions.

The features are currently undergoing developer testing, with wider availability expected later in the year.

Tags: Apple Intelligence, iOS27, Siri, Artificial Intelligence, Mobile Automation, iPhone Features, Privacy Computing, Software Updates, Consumer AI

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The device, unveiled in Cupertino and announced through the company’s newsroom, is positioned as Apple’s most affordable MacBook to date. Industry analysts say the launch could intensify competition among PC manufacturers already navigating slowing hardware demand and rising expectations around on-device artificial intelligence capabilities.

At a starting price significantly below Apple’s traditional laptop lineup, the new model represents a shift in market positioning for the company’s Mac business. Rather than focusing solely on premium hardware margins, the strategy appears designed to expand Apple’s installed base — a key driver of long-term services revenue and platform lock-in.

The laptop will begin shipping March 11 after preorders opened this week in roughly 30 markets.

Competitive Pressure Mounts in the Entry-Level Laptop Market

By launching a MacBook at $599, Apple is moving directly into a price bracket historically dominated by Windows manufacturers using chips from Intel, AMD, and increasingly Qualcomm.

According to Apple, the laptop runs on the A18 Pro chip — the same architecture family used in recent iPhone models — enabling the company to leverage its vertically integrated silicon strategy to reduce production costs while maintaining performance targets.

Executives said the device is designed to handle everyday productivity tasks as well as emerging on-device AI workloads, an area where chipmakers and PC vendors are increasingly competing.

Apple claims the MacBook Neo delivers performance gains compared with mainstream laptops powered by Intel’s Intel Core Ultra 5 processors, particularly in AI-accelerated tasks.

The company did not disclose benchmark methodology beyond internal testing, but the emphasis on local AI processing reflects a broader shift in the PC industry toward “AI PCs,” where machine learning workloads run directly on user devices rather than cloud infrastructure.

Apple Silicon Strategy Expands Beyond Premium Macs

The MacBook Neo underscores how Apple is increasingly deploying its in-house silicon across multiple product tiers.

Since transitioning away from Intel processors in 2020, Apple has steadily rolled out its custom chips across the Mac lineup. The new model extends that strategy further by adapting mobile-class silicon for a lower-cost laptop form factor.

The system’s A18 Pro chip includes a neural engine designed for AI-accelerated tasks such as document summarization, image processing, and real-time translation. Apple says these capabilities integrate directly with macOS Tahoe, the operating system shipping on the new device.

For Apple, expanding the reach of Apple silicon strengthens its control over the hardware-software stack while reducing reliance on third-party chip suppliers.

The approach has also become a central competitive differentiator against Windows PCs that rely on multiple vendors across hardware, firmware, and operating system layers.

AI Capability Expansion Moves Into Lower-Cost Hardware

A key strategic element of the new device is the extension of Apple’s AI features — branded as Apple Intelligence — to a lower price point.

The laptop’s neural processing hardware supports on-device AI features integrated into system apps, including writing tools, translation, and image editing. Running these workloads locally is also positioned as a privacy advantage, allowing user data to remain on the device rather than being processed in the cloud.

The shift reflects a broader technology industry race to embed generative AI capabilities directly into consumer hardware. Microsoft and several PC manufacturers have already begun marketing AI-enabled laptops powered by specialized neural processing units.

By enabling similar capabilities in a $599 MacBook, Apple may accelerate adoption of AI-capable devices among students and entry-level users.

Ecosystem Expansion Becomes the Underlying Strategic Play

Beyond hardware specifications, the launch appears designed to reinforce Apple’s broader ecosystem strategy.

The laptop integrates with the iPhone through continuity features such as Handoff, Universal Clipboard, and iPhone mirroring, allowing tasks to move between devices. Such integration has become a core retention mechanism within Apple’s product ecosystem.

Analysts have long viewed the Mac business as a gateway to higher-margin services and subscription products. Expanding Mac ownership among price-sensitive users — particularly students — could strengthen Apple’s long-term ecosystem engagement.

Apple said the MacBook Neo will ship with a 13-inch Liquid Retina display, up to 16 hours of battery life, and a fanless design. The device also includes Wi-Fi 6E connectivity and dual USB-C ports.

Entry-Level Mac Strategy Could Reshape Laptop Market Dynamics

The arrival of the MacBook Neo introduces a new variable into the competitive landscape for consumer laptops.

While Apple historically concentrated on premium segments, its move downmarket suggests the company is seeking to expand its user base during a period when global PC shipments remain uneven following pandemic-era demand spikes.

For competing manufacturers, the pressure may extend beyond pricing. Apple’s ability to integrate custom chips, operating systems, and services into a unified platform could force rivals to accelerate their own AI hardware roadmaps and ecosystem strategies.

Whether the $599 MacBook Neo becomes a major volume driver remains to be seen. But the launch signals a notable shift in Apple’s Mac strategy — one that could reshape expectations for performance, AI capability, and platform integration in the entry-level laptop market.

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Google, Amazon, and AI startups like OpenAI are introducing AI-powered shopping assistants designed to streamline online purchasing. Analysts say these innovations could redefine e-commerce and determine the leaders of the next digital era.

The Shift Toward AI in Online Shopping

Online shopping remains one of the most significant activities on the internet. According to Jeremy Goldman, senior director of marketing, retail, and tech briefings at eMarketer, controlling the AI-driven shopping experience allows companies to monetize attention and consumer engagement more effectively.

Tech firms are now competing to integrate AI assistants that can guide purchases, suggest products, and automate transactions. Amazon and Google, established leaders in online retail, are defending their market positions against AI newcomers such as OpenAI and Perplexity.

AI Tools Already Influencing Purchases

Recent partnerships and tools highlight the expanding role of AI in e-commerce. In September, U.S. users could purchase Etsy products directly through ChatGPT, keeping customers engaged within the chatbot platform. OpenAI announced a similar collaboration with Walmart in October.

Perplexity’s Comet web browser allows users to deploy AI agents for tasks including shopping on Amazon, prompting a cease-and-desist notice from the retail giant.

According to Salesforce data, AI-assisted shopping is projected to drive $73 billion in global online sales—roughly 22% of total orders—from the Tuesday before Thanksgiving through Cyber Monday 2025. Traffic from AI tools grew 119% year-over-year in the first half of 2025, highlighting rapid adoption.

Google and Amazon Step Up AI Features

Google introduced a range of AI shopping capabilities, including a “Let Google Call” feature, which enables its AI to contact local stores to check stock, prices, and promotions. The search giant also allows users to shop via the Gemini chatbot app, with an option to purchase items automatically when prices drop. Google handles over one billion shopping-related queries daily.

Amazon has similarly integrated AI tools, such as Rufus, a shopping assistant that answers product questions and provides personalized recommendations. CEO Andy Jassy reported that Rufus interactions increased 210% year-over-year, with users being 60% more likely to complete a purchase.

The Broader Implications for the Web

AI-driven shopping is part of a larger shift toward integrating AI into everyday online activities. Shoppers can now imagine a scenario where an AI assistant plans a party and simultaneously generates a complete shopping cart with decorations, favors, and snacks.

Vidhya Srinivasan, Google’s VP and GM of ads and commerce, described these features as “layered experiences” that enhance how people seek information and accomplish tasks.

Analysts like Brad Jashinsky from Gartner compare AI’s impact on retail to previous technological breakthroughs, including the internet, smartphones, and personal computers. Such shifts create opportunities for both established companies and startups to disrupt existing markets.

Challenges and Adoption Rates

Despite growing interest, AI assistants like ChatGPT face adoption hurdles. According to a Pew Research Center report, 66% of Americans have not used ChatGPT, while 20% are unaware of the platform. Established companies like Amazon and Google retain significant advantages through existing ecosystems, including services like Amazon Prime.

The competition is not solely about e-commerce. Tech firms are also considering their broader role in shaping the future internet. As Goldman notes, companies must decide whether to “be a spoke in somebody else’s hub or create their own vision for the web.”

Looking Ahead

AI’s role in online shopping is poised to expand, with innovations likely influencing consumer behavior, marketing strategies, and the global e-commerce market. Experts predict that the companies who successfully integrate AI assistants into their platforms could dominate the next era of digital commerce, shaping how billions of users interact with the internet.

Source: CNN – A battle is brewing over the future of online shopping

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President Donald Trump issued a sharp warning to Apple on Friday: if the tech giant doesn’t manufacture its iPhones in the United States, it will face a hefty 25% tariff.

Trump took to Truth Social early Friday morning to demand that Apple CEO Tim Cook ensure iPhones sold in the U.S. are made domestically. He wrote, “I have long ago informed Tim Cook of Apple that I expect their iPhones sold in the United States to be made in the U.S., not India or anywhere else. If not, a tariff of at least 25% must be paid by Apple.”

This move comes after Trump expressed frustration last week during his Middle East trip over Apple’s plans to build iPhones for the U.S. market at new factories in India. Apple has been shifting some production outside China as part of a diversification strategy, with India playing an increasing role.

On Apple’s recent earnings call, Cook acknowledged that most iPhones sold in the U.S. will soon be labeled “Made in India.” He also noted Apple expects to face tariff costs of up to $900 million this quarter due to these changes, though Trump exempted electronics from some of his earlier, heavier tariffs on Chinese goods.

Currently, about 90% of iPhone production happens in China, according to Wedbush Securities. Despite tariffs being reduced recently from as high as 145% on Chinese imports to around 30%, a 10% tariff still applies broadly to goods entering the U.S.

During his Middle East trip, Trump publicly challenged Cook over Apple’s overseas plans. “I had a little problem with Tim Cook,” Trump said in Qatar. “I told him, ‘You’re my friend. I treated you very well. You’re bringing in $500 billion. But I don’t want you building iPhones in India.’”

Cook and Trump met again at the White House earlier this week, though the topics of their conversation were not disclosed.

U.S. Treasury Secretary Scott Bessent weighed in Friday, highlighting the administration’s goal to bring advanced manufacturing back to America, particularly in critical areas like semiconductors. “Apple uses many semiconductor components, and we want them to help secure our supply chains,” Bessent told Fox News.

Apple already sources some chips from the U.S., thanks to its partnership with Taiwan Semiconductor Manufacturing Company (TSMC), which recently opened a chip plant in Arizona.

Why Apple Says U.S. iPhone Production Is Difficult

Despite being the most valuable company in the world, Apple has long argued it cannot fully manufacture iPhones in the U.S.

The company invests billions training engineers abroad, where large talent pools in China and India allow them to hire skilled workers at lower costs. Apple’s late co-founder Steve Jobs once told President Obama that the U.S. lacks enough industrial engineers to support large-scale manufacturing.

“You can’t find that many engineers in America to hire,” Jobs said in 2010. “If you could educate them, we could bring manufacturing back here.”

Tim Cook echoed this view in 2012, saying he hopes Apple can eventually produce more products domestically but that it would take significant effort and influence.

Experts Call U.S. iPhone Production “Unrealistic”

Industry analysts say shifting iPhone manufacturing back to the U.S. is not realistic in the near term.

Dan Ives, head of technology research at Wedbush Securities, called the idea a “fairy tale” and said the costs would skyrocket. He explained that replicating the complex Asian supply chain in America could cause iPhones to cost over $3,500—more than triple the current $1,000 price.

Ives estimated that even moving just 10% of Apple’s supply chain to the U.S. could take three years and cost about $30 billion. Fully relocating production might take five to ten years, if possible at all.

What a 25% Tariff Could Mean for Consumers

If Trump follows through with the tariff, iPhone prices in the U.S. could rise, further burdening American buyers. Rumors are already swirling that Apple may raise prices when launching its new iPhone models this fall, though the company is likely to avoid blaming tariffs directly.

Apple’s U.S. Investment Efforts

While full iPhone production in the U.S. may be out of reach, Apple has announced a $500 billion investment to expand operations stateside. This includes building a new data center in Houston to support Apple’s growing AI products, increasing data center capacity across several states, and investing in corporate offices and Apple TV+ production facilities nationwide.

Summary:

President Trump has demanded Apple manufacture iPhones in the U.S. or face a 25% tariff, citing national security and job creation goals. Apple, however, argues that current economic and workforce realities make full domestic production impossible. Experts agree the costs and timelines for reshoring production would be enormous, and tariffs could raise consumer prices. Meanwhile, Apple continues to invest heavily in U.S. facilities in other areas.

Source: CNN – Trump threatens Apple with a 25% tariff if it doesn’t build iPhones in America

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Sonos is quietly ending its eight-year collaboration with Ikea and phasing out the popular Symfonisk speaker line. The culprit? Rising tariffs introduced during the Trump administration that made producing affordable, stylish speakers nearly impossible.

The End of Symfonisk: When Quality Meets Affordability

Symfonisk launched in 2019 as a fresh way to bring Sonos’ premium sound to a wider audience without breaking the bank. Ikea designed the sleek, functional speakers — like a bookshelf speaker that doubled as furniture or a picture frame that played music — while Sonos provided its trusted wireless streaming technology.

Starting at just $99, these speakers were rare gems in the Sonos lineup: affordable, easy to use, and blending seamlessly into home decor. They supported AirPlay 2, worked perfectly with the Sonos app, and could even serve as part of a surround sound system.

For many buyers, Symfonisk was more than just budget gear — it was an elegant way to expand their Sonos sound system without spoiling the look of their living room. But keeping prices that low meant Sonos had to carefully control costs. And that’s where tariffs entered the picture.

Tariffs Crush Symfonisk’s Business Model

During Trump’s first term, tariffs of up to 25% were imposed on Chinese electronics, including parts used in Symfonisk speakers. Sonos responded by shifting production to Malaysia and Vietnam, hoping to dodge those taxes.

At first, this plan seemed to work — but in 2025, new tariffs hit those countries hard: Malaysian imports faced a 24% tax, and Vietnamese goods were slapped with a whopping 46%. Suddenly, Sonos’ fallback options became far more expensive.

The company had reassured investors that risks were under control — but the stock plunged 15% immediately after the news.

Sonos, unlike tech giants with bigger profit margins, operates with very slim hardware profits. Prices rose from $99 to $119 in the U.S., and even more in other markets. Ikea’s retail chief Jesper Brodin was blunt: when tariffs rise, customers pay more.

The affordable Symfonisk speakers were simply priced out of the market.

Software Troubles Make Things Worse

Tariffs strained the bottom line, but a disastrous software update sealed Symfonisk’s fate.

In 2024, Sonos launched a completely revamped mobile app meant to improve user experience. Instead, it caused widespread problems: speakers stopped responding, connections failed, and users struggled to control their devices.

The backlash was swift. By early 2025, CEO Patrick Spence resigned, and board member Tom Conrad stepped in as interim CEO with a clear mission: fix the core product and restore customer trust.

Sonos cut loose any project that didn’t align with this goal — including shelving a much-anticipated video streaming device and focusing back on reliable sound and software.

Unfortunately, Symfonisk, a budget-friendly line produced overseas, didn’t survive the reset.

What This Means for Sonos Fans

If you already own a Symfonisk speaker, don’t worry — your device will continue to work with Sonos updates and AirPlay 2. But once Ikea sells its remaining stock, the era of affordable, stylish Sonos speakers is over.

Sonos is now focusing on higher-end products, leaving behind the budget segment that once helped bring quality sound to more homes.

Source: Headphonesty – How Trump’s Tariffs Forced Sonos to Abandon Its Most Affordable Speakers and Break Up With Ikea

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Gamers, brace yourselves — the cost of console gaming is climbing, and fast.

Microsoft has officially raised the prices of its Xbox consoles, accessories, and even some upcoming games across the globe, citing rising development costs and shifting market conditions. While the company didn’t directly mention tariffs, the increases come as trade tensions and new import duties are rattling industries reliant on global supply chains — and gaming is no exception.

Starting this week, Microsoft’s Xbox Series S now comes with a U.S. price tag of $379.99, up sharply from its 2020 debut price of $299.99. The more powerful Xbox Series X has jumped to $599.99, a full $100 more than its previous $499.99 listing.

Accessories haven’t been spared either. Wireless Xbox controllers, headsets, and other gear in the U.S. and Canada are also seeing price bumps. And for gamers eyeing new first-party titles this holiday season, expect to pay up to $79.99 — part of Microsoft’s broader strategy to adjust to economic pressures.

These price increases aren’t limited to the U.S. Microsoft confirmed similar changes are rolling out in Europe, the U.K., Australia, and other international markets.

“We understand that these changes are challenging,” Microsoft said in a statement, pointing to inflation and higher development expenses. Still, the timing raises eyebrows, as the gaming industry grapples with new tariffs introduced by President Donald Trump, and retaliatory moves from key trade partners like China.

Microsoft isn’t alone. Sony recently raised the price of its PlayStation 5 in select regions — including parts of Europe, the Middle East, Africa, and Oceania — blaming inflation and currency volatility. Meanwhile, Nintendo’s much-anticipated Switch 2 faced preorder delays in April while retailers evaluated the potential fallout from trade disputes.

Although Nintendo is keeping its base Switch 2 price at $449.99, that’s still a steep hike from the original Switch’s $299 tag. Industry experts suggest tariffs and manufacturing costs are major contributors to that increase — even if Nintendo adds more features to justify it.

While Microsoft just posted a strong quarterly earnings report — with $70.07 billion in revenue and $25.8 billion in net income — the long-term effects of tariffs on its Xbox division remain to be seen. For now, the company is still riding momentum, with its personal computing segment (which includes Xbox) growing 6% in the last quarter.

But as costs rise and trade tensions deepen, gamers and developers alike may face more volatility ahead.

Source: AP News – Microsoft hikes Xbox prices worldwide as gaming industry faces tariff uncertainty

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