In a bizarre twist for the console market, gamers are facing two very different realities depending on where they live. While Microsoft has confirmed another price increase for the Xbox Series X in the U.S., a major retailer in New Zealand is clearing out its stock with a staggering 50% discount, raising questions about the future of Xbox hardware.
A Reddit User Strikes Gold in New Zealand
The news of the dramatic discount comes not from an official press release, but from the gaming community itself. A Reddit user on the popular r/gaming subreddit, Akbarock, posted a photo that sent shockwaves through the community. The image shows an Xbox Series X Forza Horizon 5 Bundle priced at a mere NZ$439.99 at a Costco warehouse in New Zealand—a sharp drop from its original price of NZ$879.99.
[Embedded Link: https://www.reddit.com/r/gaming/comments/1np99za/costco_new_zealand_clearing_out_their_xbox_stock/]
For those keeping track, that’s a jaw-dropping half-price discount. Converted to U.S. dollars, the console costs approximately $256, an almost unbelievable price for a current-generation system that is still actively supported by new game releases.
A Stark Contrast: The Impending U.S. Price Hike
This fire sale in New Zealand stands in stark contrast to the situation unfolding in the United States. Microsoft recently announced that, effective October 3rd, the price of the Xbox Series X will increase to $649.99, up from its original $499.99 MSRP. This follows a previous price hike in May, signaling a concerning trend for budget-conscious American gamers.
The reason for the increase is a point of debate. Former Blizzard President Mike Ybarra suggested the move was a direct response to declining profits on the hardware. Microsoft itself pointed to the "changing macroeconomic environment," a phrase many interpret as a reference to new tariffs impacting manufacturing and import costs.
Why the Massive Discount? Theories Abound
So why would a retailer like Costco practically give away the Xbox Series X? Industry observers have a few theories.
- Bundle-Specific Clearance: The discount applies to the Forza Horizon 5 bundle. With rumors swirling that Forza Horizon 6 could be announced soon, retailers may be looking to clear out older bundled inventory before a new title makes the previous one less appealing.
- Regional Inventory Management: It’s possible this specific Costco location, or the New Zealand region in general, had a significant overstock of this particular bundle that wasn't selling at the standard rate.
- A Broader Shift in Strategy: This deal may be a symptom of a larger trend. Notably, Costco has already removed Xbox consoles and games from its online stores in the U.S. and U.K., and from many physical locations. This suggests a potential strategic decision to reduce their involvement in selling Xbox hardware.
[Embedded Link: https://www.thegamer.com/costco-removes-xbox-consonsoles-games-series-x-s-from-us-uk-websites/]
It's important to note that the deal appears to be isolated to New Zealand for now, and its availability is likely limited. However, seeing a current-gen console discounted so heavily is highly unusual and speaks to potential challenges in the market.
The Bigger Picture: A Widening Sales Gap
The deep discount, while great for a few lucky Kiwi gamers, hints at a larger, bleaker picture for the Xbox console family. The sales gap between Sony's PlayStation 5 and the Xbox Series X|S continues to widen at an alarming rate.
According to sales-tracking firm VGChartz, the PlayStation 5 has significantly outsold its Xbox rival. In their 2025 sales comparison through June, the PS5 sold an estimated 5.2 million units worldwide, compared to just 1.27 million for the Xbox Series X and S combined.
[Embedded Link: https://www.vgchartz.com/article/465284/2025-worldwide-sales-comparison-charts-through-june-switch-2-vs-ps5-vs-xbox-series-xs-vs-switch/]
This massive disparity has reportedly led Microsoft to reduce hardware shipments to Europe and other key markets, as the company increasingly pivots its gaming strategy towards its successful Game Pass subscription service and a multi-platform approach for its games.
What Does This Mean for Gamers?
For U.S. buyers, the message is clear: if you were on the fence about buying an Xbox Series X, the window for finding a deal at or below the original $500 price tag is closing rapidly. The October price hike will make the console a more significant investment.
For the industry, the situation is a tale of two cities. In one, a console's price is rising due to economic pressures. In another, a retailer is so eager to be rid of its stock that it's willing to take a massive loss. Both stories point to the same conclusion: the traditional console market is undergoing a significant transformation, and the role of the Xbox hardware within it is more uncertain than ever.
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