GameStop CEO expresses confidence in the future of physical PS5 games.
Sony’s shift away from physical game releases in 2028 is set to shake up the retail landscape significantly. You might think that GameStop, a company built on selling physical video games, would be in a panic about a future without discs. Surprisingly, GameStop CEO Ryan Cohen claims he’s unfazed by Sony’s decision and isn’t worried about the absence of a physical release for Grand Theft Auto 6.
In a detailed chat with a host, Cohen dives into various aspects of GameStop’s strategy, including its ambitious $56 billion bid to acquire eBay. The interview is a bit tense, with Cohen appearing frustrated as he faces tough questions about how GameStop plans to finance the eBay acquisition. At one point, he visibly rolls his eyes at a question.
Amidst the discussion, Cohen outlines GameStop’s evolving business model, particularly in relation to eBay. He envisions GameStop stores as eCommerce hubs that can provide instant authentication for collectibles, such as Pokémon cards. The company has teamed up with PSA, the grading service for cards, which is currently overwhelmed with requests and has stopped accepting lower-tier cards.
While Cohen doesn’t clarify how GameStop will add value to eBay given its current workload, he emphasizes that the collectibles market is crucial to GameStop’s strategy. This leads to a question about Grand Theft Auto 6 and whether focusing on collectibles is GameStop’s way of adapting to the decline of physical game sales.
“It does not matter at all,” Cohen states regarding GTA 6’s lack of a physical release.
“Software today makes up less than 12% of the business, while collectibles account for more than half,” he adds. “It is totally irrelevant.”
Though he never mentions Pokémon directly, it’s clear that the trading card game has become a cornerstone of GameStop’s operations. Many of GameStop’s recent initiatives, like its digital pack marketplace, are closely tied to this hobby. The potential for massive returns is evident when products are marked up significantly beyond their retail price. GameStop notably raised prices on Pokémon’s highly-anticipated 30th anniversary set, and even after backlash led to price cuts, the retailer continues to sell these products at a substantial markup.
GameStop also profits from selling digital Pokémon card packs. Players who pull valuable digital cards (which correspond to real-world cards) can sell them back for a fraction of their worth. This model allows GameStop to sell the same card multiple times without ever transferring physical ownership. With the odds of pulling a valuable card being slim, GameStop can keep the profits from unsuccessful attempts to hit the Pokémon jackpot. Digital packs can be priced as high as $5,000 each.
This strategy sheds light on why Cohen is so keen on acquiring eBay. eBay not only sells trading card games but also owns TCGPlayer, a leading marketplace for card sales. If successful, Cohen could establish a dominant position in the Pokémon TCG market. The data from these platforms could be incredibly valuable, allowing GameStop to track sales trends and stock up on cards to manipulate pricing before competitors catch on.
Cohen mentions that GameStop generated $143 million in the first quarter of 2026. Based on his breakdown, it’s estimated that around $71 million of that came from collectibles, likely driven by Pokémon sales.
Moreover, when physical games eventually fade away, GameStop can pivot to treating older PS5 titles as retro games, a market that reportedly generated $3.8 billion in 2025.
Who would have thought that Pikachu might be the key to GameStop’s survival?
