""Line must go up" mentality has forced firms to cut costs in and push up its prices to offset margin pressure from tariffs, which act as tax on imported goods into the United States. For Microsoft, that means higher costs on various consumer goods, including Windows PCs, Surface devices, and Xbox consoles. Even products exempted from the tariffs directly may see added costs by virtue of their supply chains also seeing added costs. Firms pass on losses to consumers in the form of higher prices. For Microsoft, consumer devices are only a small part of its problem."