In the past, the retail chain GameStop sold physical video games for PS5 and other consoles. However, due to a shift in focus, the CEO clarifies how irrelevant the new strategy from Sony is.
What is GameStop’s opinion on the end of physical games for PS5? In an interview with Bloomberg, GameStop’s CEO, Ryan Cohen, revealed that the end of physical disks from Sony is “completely, completely irrelevant”. It would not make any difference to the company at all.
The reason? The sale of software accounted for only a small portion of the business anyway. Traditional game sales in physical form now account for less than 12% of total revenue.
When asked about the potentially gigantic release of GTA 6 in November, Cohen also dodged the question. Instead, he emphasized that he prefers to talk more about the future strategy of GameStop. The release will therefore not play any role for GameStop at all.
That’s why GameStop is shifting its strategy long-term and placing a different focus away from physical and digital video games.
GameStop is no longer the video game store it once was
What change is currently happening at GameStop? In contrast to the 12% that traditional game sales represented, the area of gaming collectibles has massively grown. This sector now makes up over 50% of GameStop’s business. This includes, for example, Pokémon trading cards or other merchandise.
The long-term strategy is also to take over eBay. As early as May, there was already an offer of $56 billion, which eBay rejected at that time.
However, Cohen is convinced that a merger between GameStop and eBay would create enormous synergies in the field of physical goods and collectibles. He sees potential for a gigantic company in it.
Is Cohen banking on the right strategy for the future? And what do you think of his opinion regarding Sony’s announcement? Feel free to let us know in the comments.
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