Costco abandons Xbox Series X|S and confirms: it was a "business decision"

The Xbox Series X|S console line suffered a significant setback in its distribution with the official confirmation that the major retailer Costco has permanently removed the hardware from its offerings in the USA and United Kingdom platforms. The move, classified by the retailer as a "business decision," suggests a critical reassessment of Microsoft's performance in physical retail, directly contrasting with the health of the rival console market.

After the disappearance of the Xbox pages from Costco's websites was noticed just three days ago, the company confirmed the end of the relationship. In a statement shared by former IGN employee, Destin Legarie, Costco was unequivocal:

“We have no plans to continue selling an Xbox console.”

The justification, summarized as "business decision," is a severe rejection. It implies that the sales volume or profit margin of the Series X|S did not meet the efficiency standards of the retailer's supply chain, reinforcing the narrative that this has become a disappointing sales generation for Microsoft.

The impact of Costco's abandonment may only be the harbinger of a broader trend of retraction in retail. A direct comment on Legarie's post pointed out that EB Games Canada might also be taking similar measures, although the information remains officially unconfirmed. The user claimed that an employee of EB Games Canada stated that the chain "is selling the stock it has online, apparently with no plans to restock the hardware." A quick check on EB Games' website shows that only the Series S is available for delivery or pickup, while the Series X is listed with restricted availability only for pickup, depending on local stock.

However, Costco's decision isolates the issue to Microsoft's hardware. The wholesale network will continue to stock and promote sales of Nintendo and PlayStation consoles. Costco's ongoing commitment to selling PlayStation and Nintendo lines confirms that consumer demand for dedicated consoles remains high, isolating the market setback specifically to the performance of Xbox Series X|S.

Despite the distribution challenge, the future hardware of Microsoft is not in question. The company has already publicly stated that there will be a successor console to the Series X|S line. This commitment is crucial, especially in a generation that saw Microsoft pivot to a day one release strategy on Xbox Game Pass and the expansion of its exclusive titles to rival platforms such as PlayStation and Nintendo. Losing a high-volume retail partner like Costco puts even more pressure on Microsoft to rely on Xbox Game Pass and its direct digital sales to boost revenue.

The formalization of Costco's removal of Xbox Series X|S as a "business decision" is a critical sign about Microsoft's distribution and performance in physical retail. While the retailer continues its sales of PlayStation and Nintendo, the setback of Xbox redirects attention to Microsoft's ability to sustain its future hardware strategy, especially with the pressure of rumors of other retailers, like EB Games Canada, potentially following the same path.