The planned exit of Sony from the production of physical game media by 2028 has sparked considerable debate within the industry and among gamers. However, Ryan Cohen, CEO of GameStop, does not see this as a serious threat to the video game retailer’s business model. In a Bloomberg Tech interview, he stated that the shift towards digital games barely impacts the company.
GameStop CEO Remains Calm
When asked what the future with digital game releases without disks means for GameStop, Cohen made his stance clear. “It doesn’t matter at all. Software used to be significant. Today, software makes up less than twelve percent of our business, and collectible items account for more than half. Therefore, it’s completely, completely irrelevant.”
GameStop’s Revenue by Product Categories for FY 2025
However, his statement doesn’t entirely align with the company’s published financial figures. According to the 2025 fiscal year report, GameStop generated a total revenue of $3.63 billion. The software segment, which includes physical media, game modules, and digital download codes, contributed $729.3 million. This represents 20.1 percent, making it the smallest of the three main categories.
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The largest revenue stemmed from hardware and accessories, amounting to $1.84 billion or 50.7 percent of total revenue. Collectible items generated $1.06 billion, accounting for 29.2 percent.
The Business Figures Tell a Different Story
Despite Cohen’s reassurances, financial trends show a decline in the overall software revenue by 27.5 percent compared to the previous year. Hardware and accessories also experienced a decrease of 12.3 percent. In contrast, the collectible items segment saw a surge, increasing by 47.7 percent. This category includes clothing, toys, trading cards, merchandise, and services for the authentication and valuation of collectibles.
Long-Term Trends Support Cohen’s Assessment
The trends over the long term could still support Cohen’s assessment, suggesting a gradual shift away from traditional software sales. Digital sales are rapidly gaining traction, and although GameStop may not suffer immediately, the industry landscape is undeniably changing. Gamers’ preferences are evolving, and the focus on collectible items highlights a new culture that prizes unique and tangible experiences over digital consumption.
Future Outlook and Market Trends
A significant portion of the Bloomberg interview also addresses GameStop’s attempt to acquire the online marketplace “eBay.” However, the platform’s board rejected the offer, stating that the proposal was “neither credible nor attractive.”
How will these changes shape the future of gaming and retail? Will GameStop adapt effectively, or will it find itself in a precarious situation as digital media continues its advance? These questions remain as the industry awaits the long-term effects of Sony’s decision to phase out physical game media.
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Source: Ryan Cohen via Bloomberg Tech
