GameStop stock is up after Sony kills physical discs — here's why it doesn't really hurt them

Sony's announcement that it will stop supporting physical PlayStation discs starting January 2028 had many expecting GameStop's stock to take a hit. Instead, shares are up — and the reason is straightforward: GameStop is no longer primarily a game software retailer.

For the 13 weeks ending May 2, 2026, software sales — covering new, pre-owned, and digital games — brought in $152.7 million, just 18.3% of GameStop's total revenue. That's down from $175.6 million and 24% of revenue in the same quarter the prior year. The company's biggest earner right now is collectibles at $348.9 million, or 41.8% of total revenue, followed closely by hardware and accessories at $333.7 million, or 39.9%. Physical game sales are a shrinking slice of a business that has quietly pivoted away from them. CEO Ryan Cohen also gave the stock a separate boost recently by recommitting to his plan to acquire eBay and dropping his $35 billion pay package incentive.

Sony's reasoning for the disc phase-out is that the majority of its users already prefer digital. Industry observers widely expect the PS6 to launch as a digital-only console, with 2028 as the earliest realistic window. Even before that, GTA 6 won't ship on a disc — though GameStop will still sell a physical box containing a download code. That distinction matters: GameStop can still move product on the shelf even when there's no disc inside.

The January 2028 deadline means the real impact on GameStop's software revenue is still years away, and by then the company's business mix may have shifted even further toward collectibles and hardware. The disc era isn't over yet, but GameStop has already moved on.