GameStop CEO Ryan Cohen has asserted that physical video games are "irrelevant" to the company's current business model, signaling a significant departure from the retailer's origins. In comments to Bloomberg, Cohen downplayed the impact of industry shifts like Sony phasing out physical game discs, stating it "doesn't matter at all."
Cohen explained that software, both new and used, now constitutes less than 12% of GameStop's overall revenue. In contrast, collectibles, such as trading cards, and hardware with accessories make up the vast majority of the company's income. According to GameStop's financial reports for the first quarter of 2026, collectibles accounted for 41.8% of total revenue, while hardware and accessories contributed nearly 40%. Gaming software represents the smallest segment of the business.
This perspective comes as the gaming industry continues its migration towards digital distribution. The prospect of future releases, like Grand Theft Auto 6, potentially launching without physical discs and thus eliminating resale value for retailers like GameStop, was raised by Bloomberg. However, Cohen redirected the discussion to his ambition of acquiring eBay, envisioning a combined entity with a market value of $1 trillion. The specifics of this ambitious goal remain unclear, but Cohen's statements underscore a strategic pivot away from the physical media that historically defined GameStop's market presence.