- GameStop CEO Ryan Cohen thinks the end of physical disc production is irrelevant.
- The CEO believes this strategy won’t matter at all to the retailer’s future.
- Following a recent shift, GameStop only makes 18% of its revenue from software sales.
Ever since Sony announced the end of physical disc production, the gaming community has made the company its primary enemy. Fans have threatened to abandon PlayStation for switching to digital media, while a significant portion of players are contemplating a switch to PC altogether.
Lawmakers all over the world have also taken note of this new strategy, with Sony getting hit by multiple lawsuits, including one from Mexican lawmakers. However, despite such overwhelming opposition to the end of discs, GameStop apparently has no problem with the Japanese giant moving to digital media.
Why it matters: Even though GameStop has shifted its primary source of income to another department, most retailers still rely on the profit they earn from physical game sales, and the impact on them won’t be negligible.
In a new interview with Bloomberg, GameStop CEO Ryan Cohen dismissed any concerns over Sony ending physical disc production, saying that it doesn’t matter to the company at all. Despite leading one of the biggest gaming retailers on the planet, Cohen deemed the digital-only move irrelevant to GameStop’s business.
It doesn’t matter at all. It is totally, totally irrelevant.
The CEO also dodged a question about GTA 6 launching with a download code instead of a physical disc, refusing to answer how the retailer feels about not being able to sell used copies.
In recent years, GameStop shifted from driving its business through game sales to instead relying on collectibles, toys, and other such items like Funko Pops. The Software side of the retailer only accounted for 18% of its overall revenue, while toys and other collectibles made up a whopping 41% of the total.
Despite Cohen’s indifferent remarks, however, it’s hard to believe the CEO won’t miss the 30% share from every physical PlayStation game it sold on retail. Regardless, the rest of the gaming industry is anything but indifferent to the end of disc production, with fans bombarding every one of Sony’s social media posts with comments asking for physical discs back.
Do you think the end of physical disc production will have an adverse effect on the industry? Is Ryan Cohen right about the impact being irrelevant? Tell us in the comments below or head to the Tech4Gamers forum for discussion.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devoutly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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