Full Breakdown
GameStop Dismisses Sony’s Move to End Physical Discs as “Totally Irrelevant”
7/19/2026, 11:32:48 AM
Core Event
On July 1, 2026 Sony announced that it will cease production of physical PlayStation game discs in January 2028, shifting all new releases to digital-only formats. In a Bloomberg Tech interview on July 16, 2026, GameStop chairman and CEO Ryan Cohen responded that the change “doesn’t matter at all” to GameStop’s business model.
Background & Context
GameStop, founded in 1984 by James McCurry and Gary M. Kusin, has been transitioning away from traditional software sales toward collectibles and hardware. The company began accumulating eBay stock on February 4, 2026 and submitted an unsolicited, non-binding acquisition proposal on May 3, 2026 offering $125 per share (half cash, half GameStop stock) for all outstanding eBay shares—valuing eBay at roughly $56 billion. eBay’s board rejected the bid on May 12, 2026, describing it as “neither credible nor attractive.”
Data & Statistics
- FY 2025 total net sales: $3.63 billion.
- Software (physical discs, cartridges, digital codes) revenue: $729.3 million, 20.1% of total sales (GameStop’s filing).
- Collectibles revenue: $1.06 billion, 29.2% of total sales.
- Hardware & accessories revenue: $1.84 billion, 50.7% of total sales.
- Year-on-year changes: software revenue down 27%, hardware down 12%, collectibles up 48%.
TechRadar notes that “both physical and digital copies of games are only 18% of GameStop’s total revenue,” creating a modest discrepancy with the company filing.
Official Statements & Responses
Cohen emphasized that software “made up less than 12% of the business” and that “collectibles makes up over half the business, so it’s totally irrelevant.” He also indicated plans to use “eBay’s rails” to build a digital marketplace for video-game items, though he offered no further details.
eBay’s chairman Paul Pressler, in the board’s rejection letter, stated the proposal was “neither credible nor attractive” and cited concerns about financing, long-term growth, and governance.
Sony has not issued a public comment on Cohen’s remarks.
Criticism & Opposition
The decision sparked a consumer petition, “Don’t Kill the Disc: Tell Sony to Keep Physical PlayStation Games,” which amassed over 200,000 signatures. Japanese game designer Hideo Kojima described the move as “really sad,” warning that a fully streaming-based model threatens ownership. Industry observers note that digital-only consoles could limit price competition, as new releases on the PlayStation Store are typically higher than second-hand or retailer prices.
Conflicting Reports & Gaps
- Software share: GameStop’s FY 2025 filing lists software at 20.1% of revenue, while Cohen claimed it is “less than 12%.” TechRadar cites an 18% figure. The exact proportion remains unclear.
- Future strategy: Cohen mentioned leveraging eBay’s platform but provided no concrete timeline or operational details, leaving the scope of the proposed digital marketplace ambiguous.
Verbatim Quotes
- “ Cohen responded, “It doesn’t matter at all.” — Ryan Cohen, CEO, GameStop
- “It mattered in the past; software makes up less than 12% of the business,” — Ryan Cohen, CEO, GameStop
- “Collectibles makes up over half of the business, so it's totally irrelevant.” — Ryan Cohen, CEO, GameStop
- “neither credible nor attractive.” — Paul Pressler, Chairman, eBay
- “really sad.” — Hideo Kojima, video-game designer (via IGN)
What’s Next
Cohen indicated he will continue pursuing eBay shareholders directly, stating “we’re coming for eBay one way or another.” No further public statements from Sony or GameStop regarding the disc-less transition have been announced.
