Costco Quietly Pulls Xbox Consoles from Its Stores and Website, Calling it 'Business Decision'

Costco has stopped selling Xbox consoles and accessories across its U.S. and U.K. online storefronts, with the retailer confirming it has “no plans going forward” to carry Microsoft’s hardware.

What Happened to Xbox at Costco?

Shoppers first noticed the change when Xbox consoles and games vanished from Costco’s websites. While dedicated sections for Nintendo and PlayStation remain active, offering Switch, Switch 2, and PlayStation 5 products, Xbox has been completely removed from the “Video Game & Consoles” category.

The development was initially spotted by a ResetEra user, later confirmed by others who couldn’t find Xbox listings. Even in the U.K., where Google previews still reference an “Xbox section” at Costco.co.uk, the page itself no longer shows any Xbox products.

YouTuber and former IGN journalist Destin Legarie contacted Costco directly and received confirmation. In a post on X (formerly Twitter), he reported being told: “We don’t have any plans going forward to carry an Xbox console. It was a business decision.”

Why Would Costco Stop Selling Xbox?

Neither Microsoft nor Costco has released a detailed statement. However, several industry factors may explain the move.

For one, Microsoft has recently raised the price of its consoles in the U.S. The Xbox Series S went up by $20, the Series X by $50, and the premium 2TB Galaxy Edition jumped by $70. The company attributed these hikes to “changes in the macroeconomic environment,” but the increases have made Xbox less competitive at retail compared to PlayStation and Nintendo.

Another factor could be Microsoft’s shifting console strategy. While Xbox Game Pass and cross-platform publishing have helped boost revenue, Xbox hardware sales have struggled this generation. Microsoft now positions its ecosystem as more than just consoles, with upcoming devices like the ASUS ROG Ally X and the PC-like Xbox Ally handheld launching in October 2025.

Is This the End of Xbox at Retail?

Not quite. Xbox consoles remain widely available at other major retailers such as Amazon, Best Buy, and Walmart. However, Costco’s exit is significant. The membership-based retailer moves a huge volume of consumer electronics, and losing shelf space there highlights Xbox’s increasingly complicated retail position.

The retailer had built a reputation for strong bundle deals on consoles, often including bonus accessories or games. With Xbox gone, Costco’s gaming offerings now lean entirely toward Nintendo and PlayStation.