What does Xbox and Ferrari have in common? Well, primarily you can say they’re pretty expensive.
In the United States and beyond, Microsoft has been gradually raising the price of its Xbox Series X and Xbox Series S hardware. However, United States customers are feeling the pinch the hardest, owing to President Trump’s tariff blitz on foreign imports.
The vast majority of Xbox console hardware is manufactured in China, which is subject to a variety of duties that impacts cost. Some types of electronics are exempt, such as traditional computers and smartphones. Video game consoles, however, are not exempt.
In response, Microsoft has raised the price of Xbox Series X|S consoles not once, but twice in the United States. When importing Xbox console stock from China, Microsoft has to pay a tax to the United States government, which disrupts the wafer-thin to non-existent profit margin on console hardware. Microsoft, like most other manufacturers (PlayStation included) have been passing on the cost to consumers, leading to higher prices. Some retailers don’t seem happy with the new price points.
Costco is one such retailer. This week, we wrote about reports that Costco has begun removing Xbox hardware and accessories from its store shelves — not just in the U.S., but globally. Microsoft and Costco haven’t really issued a statement through typical channels, but former IGN journalist and video game commentator Destin Legarie says he’s managed to get a statement out of the company.
Just called Costco about Xbox stock. I was told that they will no longer be carrying Xbox consoles. “We don’t have any plans going forward to carry an Xbox console.” Saying. It was a business decision.They did say they have some great deals on Switch & PlayStation, though.September 25, 2025
“Just called Costco about Xbox stock,” Destin’s post on X reads. “I was told that they will no longer be carrying Xbox consoles. ‘We don’t have plans going forward to carry an Xbox console,’ saying it was a business decision. They did have some great deals on Switch and PlayStation, though.”
For our part, we can confirm that this isn’t just a blip or typical stock shortage. Costco has indeed been removing Xbox console hardware and has them on clearance sales in certain regions. Something is definitely going on, but Microsoft has so far declined to comment.
Xbox Series X|S hardware still remains globally available, with the Xbox Ally imminent
Microsoft has had a tough generation for Xbox hardware. Still reeling from the negative reception of the Xbox One, Microsoft hasn’t really ever recovered its competitive edge against PlayStation’s competing solution. But, the industry has changed.
Despite hardware sales being anaemic, Microsoft has found success moving its popular franchises to PlayStation and PC. Xbox Series X|S also punches well above its weight. Xbox Game Pass, which is only available within the Microsoft gaming ecosystem, is a huge driver of the business. Despite having a smaller install base on paper, Xbox users are often reported to be disproportionately engaged and spendy.
Microsoft’s “Everything is an Xbox” strategy has been a winner thus far, with the gaming division outpacing Windows itself as a cornerstone of Microsoft’s overall business pie. Despite the hardware struggles on paper, the Xbox ecosystem arguably enjoys better support from developers than ever, with Square Enix returning to the platform with Final Fantasy, and PlayStation itself publishing Helldivers 2 on Xbox Series X|S this summer, too.
Still, losing a major retailer like Costco does raise questions. Microsoft’s next-gen Xbox hardware is widely expected to be Windows-oriented and PC-like, enabling OEMs like ASUS to potentially construct their own Xbox compatible PCs for the living room too. The very interesting PC handheld Xbox Ally is the first glimpse at that strategy, set to launch on October 16, 2025. It doesn’t look like Costco will be part of the fun, though.
There’s plenty of others still willing to carry Xbox hardware, though, as you can see below.
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