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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."
