Microsoft’s official hardware presence in Brazil has entered a state of uncertainty as retailers report a significant withdrawal from direct sales of both the Xbox Series S and Xbox Series X consoles in the country.
As reported by Critical Hits’ very own founder, Eric Arraché, finding an Xbox Series X or Series S sold directly by official retailers has become nearly impossible. As of early 2026, major retail chains have shifted from selling the consoles as first-party inventory to hosting them only via third-party marketplace sellers.
A spokesperson for Magazine Luiza (Magalu), one of Brazil’s largest retailers, confirmed the shift. “Magalu no longer sells Xbox video games through so-called 1P, the company’s own stock products, but continues to sell the console and its accessories through partner retailers in its marketplace,” the company said in a statement to the Brazilian website, who claims the idea to pursue the story came after a follower from its YouTube channel commented on an unrelated video about the difficulties of finding the product.
When asked for clarification regarding the halt of official sales, Microsoft’s press office in Brazil provided an evasive response, stating they had “no feedback or positioning from Xbox at this time”.
The disappearance of official distribution has led to a sharp increase in prices. The Xbox Series S, once marketed as a high-value, low-cost entry point for the current generation, is now frequently listed for over 3,000 Brazilian Reais (BRL) on third-party marketplaces — for reference, 1 USD equals over 5,20 BRL as of today, January 27th, 2026. Without a manufacturer’s recommended price to serve as a ceiling, costs have become highly vulnerable to currency fluctuations and supply shortages.
Consumers also face potential risks regarding technical support and warranties. According to Microsoft’s terms, the company may refuse warranty service for consoles not purchased through official channels, though some support cases may be opened if the buyer provides a foreign invoice.
According to the report, Brazil is not the only market affected by this strategy. Similar reports of dwindling official stock and a retreating distribution footprint have emerged from Austria, the Middle East, and parts of Eastern Europe. Analysts suggest Microsoft may be prioritizing specific major markets as it shifts toward an “All Digital” business model.
The withdrawal is viewed as a significant blow to the local gaming community, particularly as hardware component costs for RAM and SSDs continue to rise ahead of the next console generation. For many Brazilian gamers, the brand’s official status remains a mystery that even its local representatives cannot currently solve.
