GameStop CEO Says Games Are “Irrelevant” To Company

Shifting Revenue Models and the End of Physical Media

The gaming industry faces a significant transition as hardware manufacturers, including Sony, move to discontinue production of new physical PlayStation games starting in January 2028. While this shift threatens the traditional resale model that long defined GameStop’s retail presence, company leadership maintains that the transition will not impact their bottom line.

According to reporting from Bloomberg and Kotaku, GameStop has already significantly diversified its income streams away from software. Recent financial data shows that game sales account for 18 percent of the company’s revenue. In contrast, trading cards, toys, and other items—such as Funko Pops—now represent 41 percent of the business.

When asked about the future of the business plan in the context of hardware makers moving to discless consoles and digital-only game launches, CEO Ryan Cohen was dismissive of the concern. Cohen stated, “It doesn’t matter at all. Software, it mattered in the past. Software today makes up less than 12% of the business, and collectables makes up over half the business. So, it’s totally, totally irrelevant.”

The transition toward digital-only releases also impacts the availability of pre-owned games. When Cohen was asked about the hype for Take-Two’s upcoming Grand Theft Auto 6, which is set to launch in November as a digital-only product, he declined to answer the question, instead stating, “I want to go back and talk about eBay.” Because the game may never receive a physical release beyond a code in a box, GameStop would be unable to sell used copies of the title.

The Unsolicited $55 Billion Bid for eBay

Cohen’s focus remains firmly on a massive expansion effort rather than the decline of the physical gaming market. The CEO has publicly pursued a strategy to acquire the internet bidding site eBay in a deal valued at approximately $55 billion. Although eBay rejected the unsolicited proposal in May, Cohen has indicated that the company is not abandoning its efforts, with him talking about the proposed deal again in June.

Cohen views the acquisition of eBay as a way to align the company with shareholders, describing the move as a core expression of American business values. According to Cohen, who spoke with Bloomberg Tech on Thursday, “There’s nothing more American than GameStop committing its balance sheets, and this company, which is a great American company—eBay—being aligned with shareholders. That’s how this country was built—is risking your own capital.” Cohen noted that he gave up a proposed $35 billion payout in order to focus on the acquisition, and he has suggested that if the two companies joined forces, it could potentially create a “$1 trillion business.”

Media Perception and Corporate Resilience

During recent interviews, Cohen expressed frustration with the mainstream media’s coverage of GameStop. He asserted that there is a widespread desire for the company to fail, both in its legacy retail operations and its new acquisition strategies. “Everybody in the media wants GameStop to fail,” Cohen said. “Explain that to me: why everybody in the media, in the mainstream media, wants GameStop to fail.”

Cohen highlighted the company’s financial performance to counter this narrative, noting that GameStop made $143 million in Q1, which he says is the highest operating earnings in the company’s history. He questioned why observers would root against a management team that he believes has “skin in the game” by risking its own capital, contrasting this with what he describes as an “entrenched management team” that does not.

Find more reporting in our Entertainment section.