Xbox gamers might want to thank Costco for doing them a favor. The warehouse giant’s recent decision to pull Xbox consoles from store shelves in the US and UK isn’t the retail disaster it appears to be. In fact, this corporate breakup could be exactly what Xbox players needed.
According to Windows Central, Costco representatives have reportedly said they have "no plans going forward to carry an Xbox console," marking a definitive end to what was already a limited relationship. Multiple gaming forums and retailers have reported similar Xbox stock removals, with some locations clearing out remaining inventory through clearance sales. But here's the thing: Xbox players were never getting the best deal at Costco anyway.
The warehouse model that works brilliantly for bulk toilet paper falls apart when applied to gaming hardware. Costco's Xbox offerings were historically sparse, inconsistent, and often limited to specific bundles that didn't necessarily align with what gamers actually wanted. Unlike dedicated gaming retailers or even general electronics stores, Costco rarely carried the full ecosystem of Xbox accessories, games, or services that make the platform compelling.
Meanwhile, Microsoft has been steadily raising Xbox Series X and Series S prices, citing a tougher macro environment, with increases earlier in May 2025 in many regions outside the U.S., and another round in the U.S. effective October 3, 2025. These price hikes affected all retailers, but Costco's membership-based model meant customers were essentially paying extra fees for the privilege of accessing already-inflated console prices.
The Real Winners: Specialized Gaming Retailers
What Costco's exit reveals is just how many better alternatives exist for Xbox purchases. Best Buy, Target, Amazon, and GameStop continue carrying full Xbox lineups with competitive pricing, frequent sales, and crucially, knowledgeable staff who understand gaming. These retailers also offer services Costco never provided: trade-in programs, extended warranties specifically designed for gaming hardware, and integration with reward programs that actually benefit regular gamers.
Gaming-focused retailers understand that Xbox players represent what industry analysts call a "disproportionately engaged and spendy" user base despite the platform's smaller install base compared to PlayStation. This engagement translates to more frequent purchases of accessories, games, and services - exactly the kind of customers that benefit from specialized retail attention rather than warehouse-style shopping.
The timing also works in Xbox players' favor. Microsoft's "every screen is an Xbox" vision, including the ROG Xbox Ally handheld launching October 16, 2025, requires retailers who can explain ecosystem benefits and cross-platform compatibility. Costco's bulk-focused approach was never equipped to handle this kind of consultative selling.
Consider the broader retail landscape: Australians spent about AUD $3.8 billion on video games in 2024, yet reports suggest physical game sales are declining globally. This shift toward digital distribution makes Costco's traditional bulk retail model even less relevant for gaming. Xbox players increasingly buy games digitally, subscribe to Game Pass, and purchase accessories online - shopping patterns that favor specialized retailers over warehouse stores.
The departure also eliminates a source of confusion for Xbox shoppers. Costco's limited, bundle-heavy approach often left customers uncertain about compatibility, warranty coverage, and upgrade paths. Dedicated gaming retailers provide clearer information about Xbox ecosystem benefits, helping players make informed decisions about console variants, storage expansions, and service subscriptions.
For Xbox players, Costco's exit represents a market correction that pushes purchasing toward retailers better equipped to serve gaming needs. The warehouse giant's "we don't have any plans going forward" statement isn't a rejection - it's recognition that their retail model doesn't align with how modern console gaming actually works.
Sometimes the best thing a retailer can do for customers is get out of their way. Xbox players now have one less suboptimal purchasing option to navigate, leaving them with retailers who understand that gaming isn't just about moving hardware boxes, but building relationships with an engaged, passionate customer base that deserves better than warehouse-style service.
If you enjoyed this guide, follow us for more.
