GameStop CEO Ryan Cohen believes the impending end of physical game media is irrelevant to the future of his company.
In a Bloomberg interview, he described the physical market as completely irrelevant, since GameStop had long since transformed itself into a retailer of toys, trading cards, and merchandise. This is a trend that has been sweeping through the entire retail market for years.
The transformation into a toy store
Traditional software sales have lost their dominant role at the US retail chain. According to official figures, game sales now account for only 18 percent of total revenue. In contrast, collectible toys, action figures, and trading cards now generate 41 percent of income. This shift is therefore not a voluntary experiment, but a survival strategy against advancing digitalization, to which the company adapted early on.
Nevertheless, this radical course carries risks. Sony plans to discontinue physical PlayStation discs starting in 2028. Take-Two is relying on a purely digital distribution for the upcoming "GTA 6." GameStop will thus completely lose its high-margin business with used top titles. Without physical media, the most important source of foot traffic for the remaining brick-and-mortar stores will disappear.
And yet: Anyone looking for a true gaming mecca in the city today needs patience above all else. Where once towering PlayStation and Nintendo displays vied for attention, today plush toys, mugs, and keychains are piled high – and somewhere in between, a controller might be tucked away. Formerly independent game stores have long since retreated into shop-in-shop sections, such as those at GAME or HMV.
Takeover fantasies instead of gaming business
Cohen is shifting the focus away from the core business and instead pushing forward with unrealistic expansion plans. In May failed An unsolicited takeover bid for the online auction house eBay, valued at 55 billion US dollars, was made. eBay immediately rejected the offer.
The CEO is nevertheless sticking to the plan. He speculates that a merger of the two companies could generate a market value of one trillion US dollars. He does not present any concrete synergies or financing plans for this step.
GameStop's transformation is irreversible. Those who still shop there are primarily looking for merchandise, not software. For active gamers, the chain has lost all relevance. The focus is shifting completely to digital platforms and buying hardware directly from the manufacturer. Cohen is now merely managing the legacy of a dying retail era.
The CEO is a loser; let him continue trying to buy eBay.
I say this as a former GameStop store manager
Gamespot is irrelevant for used games; there were hardly any discounts, and if you sold something, you barely got any money.
Regarding the end of the disc, his statement casts a false light on the matter and comes from someone who is well aware that his own company is "completely, completely irrelevant" and always has been for most disc buyers.