Physical video game discs no longer seem to be a significant part of PlayStation’s future, yet GameStop CEO Ryan Cohen doesn’t appear concerned. As the industry makes a full pivot to digital-only gaming, Sony’s recent decision to stop disc production in 2028 also seems to have no impact on GameStop’s outlook.
In an interview with Bloomberg, GameStop CEO Ryan Cohen directly addressed Sony’s move away from physical media, saying, “It doesn’t matter at all. It’s totally, totally irrelevant. Software, it mattered in the past. Software today makes up less than 12% of the business, and collectibles make up over half the business. So, it’s totally, totally irrelevant.”
GameStop’s identity as a video game store first and foremost has quietly shifted over the years, and the company’s Q1 2026 financialsmake that all the more evident. Software sales, or video games, now account for less than 12% of the company’s revenue.
So what is currently driving GameStop’s core sales? The company is now largely supported by Pokémon cards, booster packs and sets, as well as the resale of physical video game discs and consoles that have become rare collectibles over the years, whether it be the N64, PS2, PS3, Xbox 360, GameCube, or Sega Dreamcast.
Cohen also highlighted that in Q1 2026, the company’s operating earnings reached $143 million, which he described as “the highest operating earnings in the company’s history.”
Many industry analysts view Sony’s decision as a natural step in the broader market shift in how gamers buy and play their games. Digital sales have grown steadily over the years, while physical editions come with their own challenges for publishers, including manufacturing, shipping, and retail logistics.
This shift effectively positions digital console platforms such as Sony and Xbox as the primary places to buy games. As a result, purchasing discounted physical games from independent retailers could become a thing of the past.
As for GameStop, the company recently partnered with Uber Eats to deliver games, consoles, and collectibles directly from its stores, allowing gamers to receive their purchases without leaving home.
Overall, while many view the decline of physical media as a net negative, GameStop sees it as an opportunity to focus on higher-margin areas. For the company, it comes down to the numbers, and based on its current strategy, physical video game discs are no longer a major concern.
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Rahim Amir Noorali, 2026-07-19 (Update: 2026-07-19)
