Serving tech enthusiasts for over 25 years.
TechSpot means tech analysis and advice you can trust.
Facepalm: GameStop CEO Ryan Cohen has sparked an unlikely controversy among gamers and long-time industry observers after stating that sales of physical video game discs are “totally irrelevant” to his company. While some are blaming Cohen for giving up on physical games, others argue that he is simply stating the obvious: these days, most AAA games are only available as digital downloads.
During an interview with Bloomberg News, Cohen was asked whether he worries about his company’s future in an era when publishers are increasingly pivoting to digital-only releases. Cohen replied that the decline of physical games would not hurt GameStop because “software makes up less than 12%” of the company’s overall business.
Explaining GameStop’s current business model, Cohen noted that trading cards and collectibles account for more than half of the company’s revenue, with Pokémon trading cards being the single most popular product on its store shelves. Cohen also pointed out that the $143 million the company earned in Q1 2026 represented “the highest operating earnings in the company’s history.”
According to GameStop’s latest financial report, collectibles and trading cards accounted for around 41% of the company’s revenue during the quarter, while software sales, once the company’s core business, accounted for only about 12%. The figures suggest that GameStop has evolved from the country’s leading video game retailer into a company whose business is now primarily driven by collectibles.
Still, Cohen’s remarks caught some gamers off guard, with critics arguing that stores like GameStop should be fighting to slow the decline of physical games, since they have long been central to the company’s business model. Other, more pragmatic gamers believe the CEO was simply stating the obvious, as sales of physical video games have long been surpassed by digital downloads.
Sales of physical copies of games have been declining for several years, with most AAA publishers no longer releasing physical editions of their latest titles. Recent high-profile games that launched as digital-only releases include Cairn, Marathon, Esoteric Ebb, and The Alters: Last Variable.
Rockstar Games also recently announced that the highly anticipated Grand Theft Auto VI will be a digital-only release, with the so-called physical edition containing nothing more than a code to download the game. However, following severe backlash from fans, the company hinted that it could release a true physical version at a later date.
Sony also joined the digital-only trend recently, announcing that it will no longer release physical copies of new PlayStation titles starting in January 2028. Despite protests, the decision is unlikely to be reversed, with the EU clarifying this week that it cannot prevent Sony from ending physical PlayStation game releases.
See more TechSpot in GoogleAdd us as a preferredot
