Physical Games Are “Irrelevant” To GameStop’s Business, Says CEO
Overview & Key Takeaways
In a games industry that is increasingly shifting to digital, amplified by PlayStation phasing out physical game discs starting in 2028, where does a brick-and-mortar chain like GameStop fit into this future? GameStop CEO Ryan Cohen appears to have no concern for this monumental shift whatsoever.
When asked by Bloomberg about how Sony's digital policy would affect GameStop's business, Cohen responded: "It doesn't matter. It doesn't matter at all."
While his answer appears flippant and preposterous on the surface (the word "game" is in the company's name, after all), the company's financial reporting appears to support his stance that the potential decline of physical games, new and used, would impact GameStop.
"Software--it mattered in the past. Software today makes up less than 12% of the business, and collectibles make up over half the business. So it's totally, totally irrelevant," Cohen said.
https://youtu.be/G3fCkeo2kY8?si=0cZ6O9FzWL9o_ER1&t=983
GameStop's stock price was largely unaffected by Sony's bombshell announcement about its plans to abandon physical media--in fact, the company's share price jumped up.
According to GameStop's financial reports for the first quarter of 2026, collectibles, such as Pokemon cards, made up 41.8% of the company's total revenue, with hardware and accessories making up nearly 40% of its revenue. Gaming software is by far the smallest portion of GameStop's business today.
Bloomberg also brought up Rockstar Games' plan for Grand Theft Auto 6's discless release having no resale value for a retailer like GameStop. Cohen pivoted the conversation hard, saying he wanted to "go back and talk about eBay," referring to his ongoing push to acquire the famous online marketplace and turn a combined eBay-GameStop entity into a "$1 trillion business."
How Cohen hopes to achieve such a feat is unclear. What is clear, however, is Cohen's apathy toward the medium that built GameStop's business in the first place.
In a games industry that is increasingly shifting to digital, amplified by PlayStation phasing out physical game discs starting in 2028, where does a brick-and-mortar chain like GameStop fit into this future? GameStop CEO Ryan Cohen appears to have no concern for this monumental shift whatsoever.
When asked by Bloomberg about how Sony’s digital policy would affect GameStop’s business, Cohen responded: “It doesn’t matter. It doesn’t matter at all.”
While his answer appears flippant and preposterous on the surface (the word “game” is in the company’s name, after all), the company’s financial reporting appears to support his stance that the potential decline of physical games, new and used, would impact GameStop.
“Software–it mattered in the past. Software today makes up less than 12% of the business, and collectibles make up over half the business. So it’s totally, totally irrelevant,” Cohen said.
VIDEO
GameStop’s stock price was largely unaffected by Sony’s bombshell announcement about its plans to abandon physical media–in fact, the company’s share price jumped up.
According to GameStop’s financial reports for the first quarter of 2026, collectibles, such as Pokemon cards, made up 41.8% of the company’s total revenue, with hardware and accessories making up nearly 40% of its revenue. Gaming software is by far the smallest portion of GameStop’s business today.
Bloomberg also brought up Rockstar Games’ plan for Grand Theft Auto 6’s discless release having no resale value for a retailer like GameStop. Cohen pivoted the conversation hard, saying he wanted to “go back and talk about eBay,” referring to his ongoing push to acquire the famous online marketplace and turn a combined eBay-GameStop entity into a “$1 trillion business.”
How Cohen hopes to achieve such a feat is unclear. What is clear, however, is Cohen’s apathy toward the medium that built GameStop’s business in the first place.
