In a surprising development, the entire Xbox product category has vanished from Costco's online stores in both the United States and United Kingdom. Customers searching for Xbox consoles, accessories, or games now receive zero results, while PlayStation and Nintendo products remain readily available. This sudden disappearance has sparked widespread speculation about the reasons behind Costco's decision to remove Microsoft's gaming products from its digital shelves.

Microsoft's gaming division presents a complex picture of contrasting performance metrics. While Xbox Game Pass has achieved remarkable financial success, reaching approximately $5 billion in revenue for the first time since its 2017 launch, hardware sales tell a different story. The Xbox Series X has struggled to compete with PlayStation 5's market dominance, with recent reports indicating a 22% year-over-year decline in hardware revenue as of July 2025. This hardware sales downturn coincides with an industry-wide shift away from physical game sales, prompting many retailers to reconsider their inventory strategies.

The disappearance was first noted by ResetEra user kubev and subsequently reported by TheGamer, confirming that Xbox products are no longer available through Costco's online platforms in both major markets. The selective nature of this removal is particularly noteworthy - while Xbox searches yield no results, queries for competing consoles from Sony and Nintendo continue to display full product listings including consoles, games, and accessories.

Industry observers have proposed several theories to explain Costco's decision. Some suggest it may be a temporary technical issue, though the extended duration (nearly 24 hours since initial reports) makes this less likely. More plausible explanations point to the combination of declining Xbox console sales and recent price increases implemented by Microsoft. The company has raised Xbox console prices twice within a single month, drawing criticism from industry figures including former Blizzard president Mike Ybarra, who accused Microsoft of using tariffs as justification for profit-driven price hikes.

Despite these retail challenges, Microsoft's gaming division continues to generate excitement among fans. The upcoming Tokyo Game Show promises reveals, including an unannounced Xbox title scheduled for presentation on September 27. This follows the official Xbox Showcase on September 25, creating anticipation about why Microsoft has chosen to announce this mystery game on a separate date from its main presentation.