GameStop CEO Says Physical Games No Longer Matter to Business

Ryan Cohen says collectibles now drive GameStop's success as the retailer continues its transformation, raising new questions about the future of physical gaming.

Reviving the debate over physical gaming, GameStop CEO Ryan Cohen says Sony's decision to reduce physical game releases is “not a big impact on our business.” A report says that GameStop's recent business strategy has changed significantly, as revealed in an interview. Cohen claims that tangible video game software no longer drives revenue for the company.

He claimed, “software sales, which used to be the essence of GameStop, are less than 12% of the company’s total business now”. Collectibles drive the company's growth, accounting for almost half of its operations. Cohen said Sony's decision to remove physical games was “totally irrelevant” to GameStop's approach. Longtime customers who associate the retailer with boxed games may be surprised, but the numbers tell a different story.

Bloomberg reports that GameStop's sales are now 18% software and 41% collectibles, such as Pokémon Trading Cards and other gaming products. The move is a major departure from the company's previous model of selling new games and buying used ones to resell. Cohen noted GameStop's expanding financial success, adding that the first quarter of 2026 saw $143 million in operating earnings, the company's greatest ever.

The CEO also questioned why the media seems to want GameStop to collapse after it has turned its finances around in recent years. The retailer also has bigger goals outside of gaming. GameStop reportedly offered $56 billion to acquire eBay this year, but eBay rejected the offer as unattractive.

In addition to corporate acquisitions, GameStop has been testing new in-store experiences.

Many stores have gaming PCs, trading card tables, lounge rooms, and community spaces to encourage customers to hang out, compete, and spend time in-store rather than just buy and leave. The approach shows the company's desire to become a gaming lifestyle destination, but some customers aren't persuaded it can replace physical video games.

Physical game releases have always drawn longtime GameStop customers. Despite the rise of collectibles and accessories, customers still prefer physical games. Would buyers travel for Pokémon cards or gaming products without packaged games? Some wonder. Physical game launches attract customers and encourage purchases beyond the games.

GameStop's physical inventory remains a worry. Many customers have called multiple outlets to order major releases but have been told none are in stock. Wal-Mart, Best Buy, and Amazon are often more convenient, especially with preorder incentives that encourage purchases elsewhere. Whatever GameStop's transition, the convenience of other locations may continue to drive customers away as inventory grows scarcer.

Cohen believes GameStop can succeed without physical software, but the gaming business is going toward digital distribution. Sony's reported move away from publishing physical games worries many, as Nintendo was the last major platform holder to support physical media. Some analysts and fans believe physical cartridges may last one more console generation after the Nintendo Switch 2 before digital distribution becomes standard.

Microsoft has been displaying an increasing interest in digital services; thus, Xbox is unlikely to support physical releases.

Even Nintendo, which has the strongest physical and digital game sales, may lose that advantage over time. GameStop brass appears ready for that future. The company believes collectibles, trading cards, merchandise, and community-focused retail experiences will draw gamers to its stores even if actual games die out.

How that plays out is unknown, but Cohen's statements show that GameStop no longer sees its future in physical video games. Instead, the company is focusing on gaming culture, collectibles, and community involvement, a dramatic change from its former identity as a video game retailer.