Full Breakdown
GameStop CEO Dismisses Physical Game Sales as “Irrelevant” Amid Sony’s Shift to Digital-Only Discs
7/17/2026, 3:56:35 AM
Core Event
Sony announced that it will cease printing physical discs for new PlayStation games beginning January 2028. The following day, GameStop chief executive Ryan Cohen told Bloomberg TV that the move “doesn’t matter at all” to his retailer because software sales now represent less than 12 % of GameStop’s revenue, while collectibles account for over half of the business. Cohen’s remarks sparked a wave of criticism from gamers who see the comment as dismissive of the store’s original purpose.
Background & Context
GameStop, once a dominant brick-and-mortar video-game retailer, flirted with bankruptcy before Cohen’s activist-investor campaign helped reverse its fortunes. Over the past few years the company has systematically reduced its reliance on new-release software, exiting crypto ventures in August 2023 and shuttering a short-lived NFT marketplace months later. The retailer has also pursued high-profile deals, most notably a $55.5 billion bid for eBay that was rejected by eBay’s board in mid-May. Cohen has repeatedly framed GameStop’s future around “collectibles, merch, and trading cards,” positioning physical stores as hubs for “same-day authentication” and live-commerce experiences.
Data & Statistics
- Software sales: < 12 % of total revenue (Cohen).
- Collectibles: > 50 % of total revenue (Cohen).
- Store footprint: ~2,325 U.S. locations at the start of 2025; 590 stores closed by year-end, with additional closures announced for 2026.
- Product mix: Shelves now feature Funko Pops, plush toys, and Pokémon Trading Card Game packs, while new-release game discs occupy a much smaller portion of floor space.
Official Statements & Responses
Cohen emphasized that the retailer’s profitability no longer hinges on new-game sales. He argued that the “bulk of GameStop’s income hinges on sales of collectibles, rather than gaming software,” and suggested that the company could further leverage its physical footprint for “live commerce” and “same-day authentication” using eBay’s infrastructure if a future acquisition were to proceed. Sony’s decision, announced without a direct comment in the sources, is presented as an industry-wide shift toward digital exclusivity.
Criticism & Opposition
The gaming community reacted sharply. Many long-time customers expressed frustration that a store named “GameStop” appears to be abandoning its core product. Social-media commentary labeled the remarks “the worst thing imaginable for his relationship with gamers,” and some users suggested the retailer should adopt a new name reflecting its collectibles focus. Critics also pointed to GameStop’s higher prices on Pokémon cards, arguing that the shift may exploit scarcity rather than simply adapt to market trends.
Verbatim Quotes
- “It doesn't matter. It doesn’t matter at all,” — Ryan Cohen, CEO, GameStop
- “Software... it mattered in the past. Software today makes up less than 12% of the business, and collectibles makes up over half the business. So it’s totally, totally irrelevant.” — Ryan Cohen
- “It is totally, totally irrelevant.” — Ryan Cohen
- “GameStop is a business that was on the brink of bankruptcy, and everybody was betting against it for good reason,” — Ryan Cohen
- “I want you to look your viewers in the eyes and tell them, ‘Are you gonna bet on an entrenched management team running the business, or me, someone that went head to head against Amazon selling 30-pound bags of dog food, turned around a very tough situation at GameStop, and now the company is making lots of money?” — Ryan Cohen
Conflicting Reports & Gaps
All cited sources agree that software accounts for less than 12 % of revenue and collectibles exceed 50 %, and no alternative figures were presented. The articles do not provide Sony’s direct response to the retailer’s comments, nor do they disclose detailed financial breakdowns beyond the percentages quoted by Cohen.
