Microsoft says demand for Xbox Series X and Series S consoles is still exceeding available supply, even as hardware sales continue to weaken six years into the current generation.
Speaking after this week’s earnings call with analysts, Xbox CEO Asha Sharma said the company is expanding its refurbishment program to place more consoles with players before the 2026 holiday season and the release of Grand Theft Auto 6.
“Console sales remain constrained by supply, with more demand than consoles available,” Sharma posted on X. She added that Microsoft was making progress but still had “a lot more work ahead” to increase the number of consoles reaching customers.
For broader context on hardware trends, readers can browse RETROCADE’s arcade news and industry coverage or compare the different formats in the Arcade Machine Buying Guide.
Microsoft turns to refurbished consoles
The refurbishment push follows an email sent to some Xbox owners whose consoles had not been used for an extended period. Microsoft encouraged those customers to trade in their Xbox Series X or Series S at retailers such as Best Buy, particularly after several rounds of price increases.
Microsoft does not earn a profit from the resale of a used console. However, putting existing hardware in the hands of active players can create additional revenue through later purchases on the platform, including major releases such as GTA 6. Customers considering other home-gaming options can also explore RETROCADE’s range of arcade machines and compact bartop arcades.
One commentator questioned whether Microsoft’s supply explanation accurately reflected conditions in regions it had neglected, including Europe, arguing that the claim did not match some customers’ experience when trying to buy an Xbox. The discussion was posted on X, with the related exchange dated October 29, 2026.
Supply claims vary by market
There is reason for scepticism about how constrained Xbox supply is in every region. In the United States, consoles can often be ordered through Microsoft’s website or online retailers. Although some physical stores may lack shelf stock, American customers who actively want an Xbox can generally purchase one without significant difficulty.
The United States is only one of Xbox’s markets. In other parts of the world, Microsoft has appeared unable to maintain reliable supplies, while in some regions it has withdrawn support or servicing altogether.
RAM shortages could complicate the next Xbox
The source material attributes wider hardware pressure to an AI-driven RAM shortage, with the supply shock expected to intensify into 2027 and potentially continue beyond that point.
That creates a difficult outlook for Microsoft’s next hardware generation. Project Helix devices are reportedly planned for around the 2028 holiday season, so the company will need to avoid the availability problems that affected Xbox Series X and Series S. It will also need to keep pricing under control.
A recent report estimated that Microsoft’s next-generation Xbox could cost between $1,200 and $1,800 if the company chooses not to subsidise the hardware as generously as it has with previous launches.
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