GameStop CEO Ryan Cohen has announced that the company’s future “isn’t in games,” marking a dramatic shift for the longtime video game retailer. The company plans to pivot away from its traditional focus on selling physical video games and hardware, instead expanding into collectibles, trading cards, and other pop culture merchandise.
This big change comes as physical game sales continue to decline across the industry. With digital storefronts like PlayStation Network, Xbox Live, Nintendo eShop, and Steam dominating the market, fewer customers are buying physical copies of games, directly impacting GameStop’s core business model.
GameStop has already begun transforming many of its locations, with stores now featuring expanded sections for trading card games like Magic: The Gathering and Pokémon, anime merchandise, Funko Pop figures, graphic tees, and other collectibles.
GameStop’s transformation isn’t really a shock to folks paying attention to the industry. Founded in 1984 as Babbage’s, the company eventually rebranded and built its reputation on new and used video game sales. For decades, it was the go-to destination for midnight game launches and trading in used titles for store credit.
Recent years have brought turbulent times for the retailer. After becoming the center of 2021’s “meme stock” phenomenon that temporarily inflated its market value, GameStop has tried out different things including NFT marketplaces and cryptocurrency investments, most recently purchasing Bitcoin as part of its new strategy.
The company has also gone through major leadership changes and layoffs while closing hundreds of physical locations. Its international brands, including EB Games, have seen similar shifts toward trading cards and collectibles.
Many loyal customers have mixed feelings about the change. While some understand the business necessity, others mourn the loss of what was once the definitive gaming retail experience. Walk into most GameStop locations today, and you’ll find less shelf space dedicated to games and more to collectibles and merchandise.
