GameStop CEO Ryan Cohen said Sony's decision to eliminate physical PlayStation discs is "totally irrelevant" to the company's business operations.
The statement comes as the gaming industry shifts toward digital distribution, raising questions about the long-term viability of brick-and-mortar retailers that traditionally relied on physical media sales.
Cohen said that software, which includes physical discs, accounts for only about 12% [1] of GameStop's revenue. This shift in revenue composition allows the company to weather the transition to digital-only consoles without significant financial distress.
Sony is scheduled to stop producing physical PlayStation game discs in January 2028 [3]. While this move removes a primary product category for many retailers, Cohen said that physical games are totally irrelevant to the current business model of GameStop.
According to Cohen, the company's growth is now driven by collectibles and other non-software revenue streams. He said that because collectibles now drive growth, the disc-less move by Sony does not affect the retailer.
This strategic pivot toward collectibles marks a departure from GameStop's origins as a dedicated software vendor. The company is increasingly positioning itself as a hub for gaming culture and merchandise, rather than a simple point of sale for software.
Outside of the hardware transition, the company has faced other market pressures. Recent reports highlighted an eBay takeover bid valued at $56 billion [2], though the company's focus remains on its internal diversification strategy.
“"Physical games are totally irrelevant to our business."”
GameStop is attempting to decouple its financial health from the decline of physical media. By pivoting to high-margin collectibles, the company is transforming from a traditional software retailer into a specialty hobby shop, reducing its vulnerability to the digital mandates of platform holders like Sony.
