Ryan Cohen from GameStop describes physical game sales as 'completely insignificant' and redirects every inquiry towards eBay.
Cohen referred to physical game sales as "totally, totally irrelevant" during a Bloomberg TV interview, asserting that collectibles are now the driving force behind GameStop, while also frequently returning to his recently rejected bid for eBay.
GameStop's CEO Ryan Cohen dismissed the decline in physical video game sales as unimportant to the company's operations in a Bloomberg TV interview on Thursday. His remarks followed Sony's announcement earlier this month regarding its plans to cease physical disc production for new PlayStation titles by 2028. "It doesn’t matter at all," he stated.
This assertion is supported by recent figures, at least in part. In GameStop's latest quarter, software sales (which include both physical and digital game copies) constituted only 18 percent of total revenue. Collectibles, particularly popular trading cards like those from Pokémon, have surpassed all other categories and now account for 41 percent of the business.
During the interview, Cohen reiterated that his long-term vision involves acquiring eBay, having placed a bid of approximately $56 billion that eBay’s board rejected in May. He suggested that a merger of GameStop and eBay could form "a $1 trillion business," highlighting significant synergy in the marketing of physical goods and collectibles. GameStop has been steadily purchasing eBay shares and currently owns nearly eight percent of the company.
When asked about the anticipated demand for Grand Theft Auto VI, set to launch on November 19 and projected to earn over $5 billion in its first week according to analytics firm NewZoo, Cohen redirected the conversation back to eBay. This shift was telling: with the most significant game launch in history approaching in four months, GameStop’s CEO preferred to discuss an acquisition that has already been turned down.
Cohen’s lack of concern for physical game sales underscores a transformation that has been ongoing for years. Digital downloads now comprise 85 percent of full-game sales on PlayStation, and GameStop has shut down over 1,300 stores during the last two fiscal years. The company’s transition towards collectibles and its desire to evolve into an e-commerce platform through eBay illustrate Cohen's belief that GameStop can endure the decline of the traditional model that established it.
The success of that belief hinges entirely on eBay. Cohen has built a cash reserve of $9 billion via convertible debt and meme-stock era share sales, yet eBay’s board has shown no willingness to engage in a deal, and bridging the financing gap for a roughly $56 billion acquisition remains a significant challenge. Although physical game sales may be deemed irrelevant by GameStop, Cohen has yet to demonstrate that any alternative is sufficiently significant to take their place.
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Ryan Cohen from GameStop describes physical game sales as 'completely insignificant' and redirects every inquiry towards eBay.
GameStop CEO Ryan Cohen deemed physical game sales as unimportant during an appearance on Bloomberg TV, as collectibles accounted for 41 percent of revenue and he advances his eBay proposal.