Microsoft’s Xbox brand may be facing growing challenges in the retail space. According to recent reports, major retailers, including Costco and EB Games, have begun scaling back or outright removing Xbox consoles and branding from their stores and websites, raising questions about the long-term direction of the platform.
Content creator Destin Legarie shared that Costco, one of the largest warehouse retailers in the United States, confirmed they will no longer stock Xbox consoles. In a post, he quoted the company’s response: “We don’t have any plans going forward to carry an Xbox console. It was a business decision.” Costco representatives also reportedly emphasized that they still carry strong deals on PlayStation and Nintendo Switch hardware. Given Costco’s influence in the U.S. market, this move could have a measurable impact on Xbox’s retail presence.
Meanwhile, in Australia and New Zealand, EB Games appears to have taken similar steps. As noted by NextGenPlayer, the retailer has removed Xbox logos from its homepage and pulled Xbox hardware from store displays. The Xbox branding was still visible on EB Games’ site as recently as August, but has since been quietly removed, suggesting a deliberate shift in focus.
These developments arrive at a time when Microsoft has already drawn scrutiny for its hardware strategy. Earlier this year, the company announced multiple price increases for the Xbox Series X and Series S consoles, the second round of which is set to take effect in October 2025. The Xbox Series X standard model, for instance, will rise from its original $499.99 launch price to $649.99, while the Series S (512GB) will move from $299.99 at launch to $429.99 after the adjustment. Accessories have also seen price hikes, fueling frustration among long-time fans.
Microsoft has not issued a statement in response to the Costco or EB Games reports. However, the company has been signaling a shift in strategy. Instead of relying solely on in-house consoles, Microsoft has increasingly positioned third-party devices as extensions of the Xbox brand. At the recent Tokyo Game Show 2025, the ASUS ROG Ally handheld was promoted under the slogan “This is an Xbox,” reflecting a pivot toward expanding the ecosystem through Windows-based and partner hardware rather than solely through its own consoles.
For now, the future of Xbox hardware remains uncertain. With official sales figures no longer disclosed by Microsoft and growing reliance on revenue metrics, speculation continues to swirl over whether Xbox consoles are losing ground in a competitive marketplace dominated by Sony and Nintendo. The withdrawal of Xbox stock and branding from prominent retailers will likely intensify concerns that Microsoft may be rethinking its role as a traditional console manufacturer.
