Costco Temporarily Removes Xbox Consoles and Products from US Stores Due to Price Surge

Costco Drops Xbox Series Consoles Amid Price concerns

Published: September 23, 2025 – In a significant development for the gaming industry, Wholesale retailer Costco has reportedly stopped carrying the xbox Series consoles and all related products. This action follows significant price increases implemented by Microsoft for its Xbox Series X and Series S gaming systems.

The Impact of Price Increases

Microsoft recently increased the price of the Xbox Series X from $499 to $549,while the Xbox Series S saw a price jump from $299 to $349. The company cited economic factors and a desire to align pricing with the value offered as justifications for these adjustments.However, the increases appear to have had a negative impact on consumer demand, notably at a key retail partner like Costco.

Industry analysts suggest that Costco’s decision is a direct response to slowing sales numbers and increased customer reluctance to pay the higher prices. costco is known for offering competitive pricing,and the higher cost of the Xbox Series consoles may have conflicted with their business model.

Broader Implications for the Gaming Market

This move by Costco comes at a crucial time for Microsoft and the Xbox platform. The company is currently competing fiercely with Sony’s PlayStation 5, which has consistently outsold the Xbox in many markets. Did You Know? Despite Microsoft’s significant financial resources, the PlayStation 5 has maintained a lead in global console sales since its launch in 2020.

The removal of the Xbox Series consoles from Costco’s shelves could further exacerbate the sales gap between the two consoles. It also signals a potential shift in retail strategies, with larger retailers becoming more sensitive to price points and consumer spending habits.

Xbox Sales Performance

Recent reports indicate that Xbox sales have been lagging behind playstation 5 sales for several consecutive quarters. A key factor contributing to this disparity has been supply chain issues, and also strong exclusive titles offered by Sony.

Console	Original Price (USD)	New Price (USD)
xbox Series X	$499	$549
Xbox Series S	$299	$349

Pro Tip: Keep an eye on promotions and bundles, as these often offer better value and can mitigate the impact of price increases.

The long-term implications of this situation remain to be seen. Microsoft will need to address concerns regarding pricing and product availability to regain lost ground in the console market.

What impact do you think this will have on the wider gaming market? Will other retailers follow suit?

The Evolving Gaming Retail Landscape

The video game retail environment is constantly changing, influenced by factors such as digital game sales, subscription services like Xbox Game Pass, and the ongoing chip shortage. Customary brick-and-mortar retailers like Costco play a vital role in reaching a broad customer base, but must adapt to stay competitive.

The rise of direct-to-consumer sales from console manufacturers and the increasing popularity of cloud gaming are also reshaping the industry. Statista reports continued growth in the gaming market, with revenue expected to reach $95.47 billion in 2024.

Frequently Asked Questions About the Xbox and Costco

• What caused Costco to stop selling xbox Series consoles?
  Costco removed the consoles due to recent price increases implemented by Microsoft.
• How much did the price of the Xbox Series X increase?
  The Xbox Series X increased in price from $499 to $549.
• Will Costco bring back the Xbox Series consoles in the future?
  That depends on Microsoft’s pricing strategy and consumer demand. There is no current confirmation.
• Is the PlayStation 5 also affected by price increases?
  Currently, the PlayStation 5 has not seen a widespread price increase like the Xbox series consoles.
• What is Xbox Game Pass?
  Xbox Game Pass is a subscription service that provides access to a library of games for a monthly fee.
• Are digital game sales impacting traditional retail?
  Yes, digital game sales are steadily increasing, posing a challenge to traditional brick-and-mortar retailers.
• What other retailers sell the Xbox Series consoles?
  Major retailers like Best Buy, Amazon, and Walmart continue to sell the xbox Series consoles.

Share your thoughts on this developing story in the comments below!

What factors led Microsoft to increase the price of Xbox Series X and Series S consoles?

The Disappearance of Xbox at Costco: What’s Happening?

Reports surfaced in September 2025 that Costco Wholesale is temporarily pulling Xbox Series X and Series S consoles, along with related accessories and games, from its US store shelves and online inventory. This isn’t a permanent removal, but a direct response to a significant price increase implemented by Microsoft. The move impacts shoppers looking for deals on Xbox consoles,Xbox Series X,Xbox Series S,and Costco Xbox bundles.

Understanding the Microsoft price Hike

On September 10, 2025, Microsoft announced a $50 price increase for both the Xbox Series X and Xbox Series S. This brings the manufacturer’s suggested retail price (MSRP) to $549.99 for the Series X and $299.99 for the Series S.Microsoft cited a variety of factors contributing to this decision, including:

* Inflationary Pressures: Rising costs of components, manufacturing, and shipping.

* Supply Chain Challenges: Ongoing disruptions, though easing, still impact production.

* Market Dynamics: Adjusting to the current gaming landscape and consumer demand.

This price adjustment directly impacts retailers like Costco, who often offer competitive pricing and bundled deals.

Why Costco Reacted So Quickly

Costco is known for its commitment to value and bulk purchasing. Maintaining competitive pricing is central to its buisness model. When Microsoft raised prices, it became difficult for Costco to offer the same attractive deals on Xbox gaming consoles that its members expect.

Rather than absorb the cost increase and potentially reduce profit margins, Costco opted to temporarily discontinue Xbox products.This strategy allows them to reassess their pricing strategy and potentially negotiate with Microsoft for better terms. It also prevents the disruption of their value proposition to members seeking cheap Xbox Series X or affordable Xbox Series S options.

Impact on Costco Members and Gamers

The removal of Xbox products from Costco has several implications:

* Limited Availability: Shoppers lose a convenient source for purchasing Xbox consoles, especially bundled deals.

* Higher Prices Elsewhere: The Microsoft price increase is being reflected across all retailers, meaning gamers will generally pay more for an Xbox.

* Potential for Resale Market Inflation: Reduced availability could lead to increased prices on the secondary market (eBay, Facebook Marketplace, etc.).

* Impact on Xbox Game Pass: While consoles are unavailable, access to Xbox Game Pass remains unaffected.

What Alternatives Do Gamers Have?

For those looking to purchase an Xbox console, several alternatives remain:

* microsoft Store: direct purchase from Microsoft’s online and physical stores.

* Other Retailers: best Buy, Amazon, gamestop, and Walmart continue to sell Xbox consoles at the new MSRP.

* Used market: Explore reputable sources for pre-owned consoles, but exercise caution and verify the seller’s reputation.

* Consider PlayStation 5: The PS5 remains a viable choice, though availability can still be challenging.

Costco Membership Renewal Information (Mexico)

While this article focuses on the US situation, for our readers in Mexico, it’s important to note how to renew your Costco membership. You can renew your membership at any Costco location within Mexico, by calling their member services at 55 5246 5593 or 55 5246 5594, or online at costco.com.mx under the “Memberships” section. This information is relevant as Costco membership is key to accessing potential future Xbox deals.

Will Xbox Return to Costco?

It’s highly likely that Xbox products will return to Costco once a more favorable pricing arrangement can be reached with Microsoft. costco has a history of temporarily removing products when pricing becomes unsustainable and then reintroducing them when conditions improve. Gamers should monitor Costco’s website and in-store displays for updates. The situation is fluid and dependent on Microsoft’s future pricing decisions and Costco’s ability to negotiate competitive terms. Keep an eye out for potential Costco Xbox deals in the coming months.