Retailer slashes Xbox Series X price by 50% despite U.S. price increases on Microsoft console

Gamers hoping to purchase an Xbox gaming system received more unwelcome news from Microsoft. After console prices already rose in May, U.S. buyers can expect even higher MSRPs starting on October 3rd. However, while some retailers no longer sell the console, others are clearing out stock with dramatic discounts. In New Zealand, Costco has cut the Xbox Series X price in half.

Akbarock on the Gaming subreddit posted a photo confirming the steep discount. An Xbox Series X Forza Bundle is now available for NZ$439.99, rather than NZ$879.99. The asking price, converted to USD, is approximately $256.

It's possible that the store had an overabundance of this particular bundle. Coincidentally, Forza Horizon 6 may be announced shortly, making Forza Horizon 5 more prone to discounts. It's also unclear how widespread the deal is in New Zealand. Costco, in other regions, no longer sells the Xbox Series X or S online or in many physical locations. Nevertheless, it's unusual to see a current-gen console still well-supported by publishers, reduced this dramatically.

A bleak future for Xbox consoles

Other stores have avoided similar deals, but have found it difficult to sell Microsoft's gaming consoles. The gap between the sales of the PlayStation 5 and the Xbox Series X and Series S continues to widen. Through June, VGChartz reported that roughly 5.2 million PS5s had sold worldwide in 2025 compared to 1.27 million for its green team rival. Microsoft reportedly already had reduced hardware shipments to Europe and other parts of the globe.

U.S. buyers may be hunting for bargains before the Xbox Series X price jumps to $649.99 in October. Former Blizzard President Mike Ybarra attributed the Xbox price increase to declining profits. However, Microsoft referred to a "changing macroeconomic environment", with many gamers identifying tariffs as the cause.