Costco Drops Xbox. Are Higher Prices to Blame?

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Xbox Series X|S Consoles

While Xbox continues to rake in revenue through Game Pass, not everything is going well for the gaming giant. Not entirely unexpected; with the exception of the Switch 2, hardware sales across the gaming industry have begun to slump, and some retailers are rethinking their inventory. Just this week, shoppers noticed that Xbox consoles were no longer available at Costco, a major shakeup from the third-largest retailer in the world.

The Latest Price Increase for Xbox

The change comes shortly after Microsoft announced a price increase on the Xbox Series X & S consoles. This followed from yet another increase in May, though many speculate the October change is caused by US tariffs impacting production costs. While initial reports indicated the Series X & S were still available at international Costco locations, a rep has since confirmed the split is real.

It’s likely that Costco has been having trouble moving Xbox units for a while now. With the new cost of a Series X console coming to $649.99, it will be even harder for retailers to get units off the shelf. With hardware sales becoming more of a challenge across the industry, it’s no surprise Xbox is continuing to expand its catalog and features on Game Pass. Still, the company continues to face challenges with a series of mass layoffs across multiple studios over the summer. The news that Costco is dropping them bodes ill for the company’s immediate future.

Still, Xbox isn’t out of the hardware game just yet. October will see the release of the ROG Xbox Ally X, a handheld in the vein of the Steam Deck. And rumors abound that a next-gen Xbox console will release sometime in 2027. A lot can happen in two years though, and one can’t help but wonder if retailers will want to price a next-gen console at premium prices.

Sourced from Windows Central. For more coverage, check back regularly with our Other Games section.

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