Xbox consoles, games, and accessories have completely vanished from Costco’s online stores across the United States and United Kingdom. The wholesale retailer’s sudden removal of all Xbox-related products marks a significant blow to Microsoft’s already struggling hardware presence, while PlayStation and Nintendo products remain prominently featured on the platform.
The Silent Removal That Shocked Gamers
Costco’s decision to delist Xbox products happened without any official announcement or explanation. Searching for “Xbox” on the retailer’s website now returns zero results, displaying the message “We’re sorry. We were not able to find a match.” This contrasts sharply with dedicated sections that still exist for PlayStation and Nintendo products, where customers can purchase the PS5, Nintendo Switch, and their respective games and accessories.
The removal extends beyond just the online store. Reddit users and industry observers have reported that physical Costco locations are also reducing their Xbox inventory, with some stores completely eliminating Xbox displays from their electronics sections. This represents a comprehensive withdrawal from one of the world’s largest retail chains.
Xbox’s Mounting Retail Challenges
This development comes at a particularly difficult time for Microsoft’s gaming division. Xbox hardware revenue declined 25% in Microsoft’s fiscal year 2025, which ended in June. The PlayStation 5 has sold approximately 80.3 million units compared to Xbox Series X/S’s estimated 30 million units, representing a devastating 2.7:1 sales ratio that shows no signs of improving.
The timing coincides with Microsoft’s second Xbox console price increase of 2025. The company recently announced that Xbox Series X prices would rise to $649.99, with the special Galaxy Black edition reaching $800. These price hikes, attributed to “changes in the macroeconomic environment,” likely reflect the impact of aggressive tariff policies affecting companies that manufacture products overseas.
Market Share Reality Check
The stark sales numbers help explain Costco’s decision. Current market share data reveals PlayStation 5 commanding approximately 69.9% of the console market compared to Xbox Series X/S’s 30.1%. In the crucial US market, PlayStation 5 has sold 25.81 million units through April 2025, compared to Xbox Series X/S’s 17.05 million units – an 8.76 million unit deficit even in Microsoft’s strongest territory.
This generation represents Xbox’s worst performance relative to PlayStation since the original Xbox launch. The Xbox Series X/S is currently trailing the Xbox One by 19% at the same point in its lifecycle, while PlayStation 5 is outpacing the PS4 by 7%. These trends suggest Xbox’s retail footprint will likely continue shrinking as retailers prioritize shelf space for products that actually sell.
| Console | Lifetime Sales (2025) | Market Share | US Sales (April 2025) |
|---|---|---|---|
| PlayStation 5 | 80.3 million | 69.9% | 25.81 million |
| Xbox Series X/S | 30 million | 30.1% | 17.05 million |
The Economics Behind the Decision
Costco operates on razor-thin margins and relies on volume sales to generate profits. The company’s decision likely reflects poor Xbox sales performance that couldn’t justify the retail shelf space and inventory investment. When consoles don’t move, they tie up valuable warehouse space and capital that could be allocated to faster-selling products.
The situation becomes more problematic when considering that console manufacturers typically sell hardware at a loss, expecting to recoup costs through software sales and services. If Xbox consoles aren’t selling well enough to generate substantial game and accessory purchases, retailers have little incentive to continue stocking them.
Industry Implications
Costco’s move signals a broader shift in the gaming retail landscape. As the third-largest retail chain globally, Costco’s decision could influence other retailers to reconsider their Xbox inventory commitments. Competing warehouse retailers like BJ’s and Sam’s Club still carry Xbox products, but with significantly reduced selections compared to their PlayStation and Nintendo offerings.
This development aligns with Microsoft’s apparent pivot away from traditional console sales toward services and multi-platform gaming. The company has been porting previously exclusive Xbox titles to PlayStation platforms and emphasizing Xbox Game Pass subscriptions over hardware sales. However, losing retail presence creates a negative feedback loop that makes future hardware success even more challenging.
Frequently Asked Questions
Why did Costco remove Xbox products from their stores?
Costco hasn’t provided an official explanation, but poor sales performance and recent Xbox price increases likely influenced the decision. The retailer continues selling PlayStation and Nintendo products, suggesting Xbox specifically underperformed.
Can I still buy Xbox consoles at other retailers?
Yes, Xbox consoles remain available at most major retailers including Best Buy, GameStop, Target, and Amazon. However, some warehouse retailers like BJ’s and Sam’s Club have reduced their Xbox selections significantly.
Does this mean Xbox is discontinuing consoles?
No, Microsoft has denied plans to exit the console business and claims to be working on next-generation Xbox hardware. However, the company is clearly struggling with current-generation sales performance.
How do Xbox sales compare to PlayStation this generation?
PlayStation 5 has sold approximately 80.3 million units compared to Xbox Series X/S’s estimated 30 million units, representing a 2.7:1 sales advantage for Sony’s console.
Will Xbox prices continue rising?
Microsoft has implemented two price increases in 2025, with the Xbox Series X now costing $649.99. Future pricing depends on economic conditions and tariff policies affecting overseas manufacturing.
What does this mean for Xbox’s future retail presence?
Losing presence at major retailers creates challenges for Xbox’s visibility and accessibility to consumers. This could accelerate Microsoft’s shift toward digital distribution and services rather than traditional retail sales.
Conclusion
Xbox’s disappearance from Costco represents more than just one retailer’s inventory decision – it reflects the harsh reality of console market dynamics where underperforming products lose crucial retail real estate. With PlayStation 5 outselling Xbox Series X/S by nearly 3:1 and Microsoft implementing multiple price increases, retailers are making calculated decisions about which gaming products deserve valuable shelf space. While Xbox consoles remain available through other channels, losing presence at the world’s third-largest retailer signals significant challenges ahead for Microsoft’s hardware ambitions in an increasingly competitive gaming market.