Microsoft urges owners of idle Xbox consoles to trade them in amid severe stock shortages

Microsoft is contacting owners of dormant Xbox Series X|S consoles and recommending that they trade the devices in, in an effort to improve the availability of new units as the launch of Grand Theft Auto VI approaches. The outreach, identified by users on social media and first reported by PowerUP, includes links to Best Buy’s trade-in program and targets customers who have multiple or inactive consoles.

Industry analysis from market research firm Circana indicated that Xbox hardware sales have fallen to their lowest level on record, a trend mirrored by PlayStation, which is experiencing its weakest sell-through since 2013. Analysts attribute the shortage to heightened demand for memory components from companies developing artificial-intelligence technologies, leaving fewer chips for consumer electronics such as video-game consoles.

The scarcity has driven up prices for new Xbox, PlayStation and Nintendo hardware, and limited stock in many regions, especially outside core markets like the United States, United Kingdom, Canada and Australia. Microsoft and its rivals are intensifying efforts to secure components, while major game publishers have begun restricting new releases to current-generation consoles.

"We want to make it easier for gamers who aren’t using their consoles to pass them on to someone who will," a Microsoft spokesperson said in the email.

Analysts predict that the memory-chip shortage could persist through 2028 or 2029, potentially affecting shipments of smartphones, PCs and gaming consoles.