Recently, Costco announced that it has decided to remove and stop selling Xbox consoles, a move that sets it apart from other retail chains. Many retailers are already decreasing the space allocated to Microsoft Gaming products, but Costco’s decision to completely remove Xbox consoles is noteworthy.
Xbox Community Shift Towards Digital Format
The Xbox community has shown a strong preference for digital format, especially with the popularity of the Game Pass service, which has undergone changes and price increases. This trend towards digital content has led stores in countries like the United States and the United Kingdom to reduce the presence of Xbox consoles in their stores.
Decline in Xbox Physical Sales
According to data from NielsenIQ/GfK Entertainment, Xbox consoles now only make up 13% of total console sales in the UK and just 6% of physical video game units sold in the region. This data clearly highlights the shift towards digital consumption among Xbox users. In 2022, Xbox consoles accounted for 31% of console sales in the UK, indicating a significant drop to 50% in just three years by 2025. This decline in physical sales helps explain why retailers are scaling back their support for Microsoft Gaming products.
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