Don’t be surprised if your local GameStop starts pushing trading cards more than video games. At this week’s annual stockholders meeting, CEO Ryan Cohen revealed that the company is betting its future on physical trading cards from popular franchises like Pokémon and Magic: The Gathering.
GameStop, known for decades as a video game retailer, has struggled as digital games become more popular, causing its profits to decline. In the first quarter, the company’s revenue dropped about 17% year-over-year to $732 million.
Cohen sees trading cards as a natural extension of GameStop’s business and heritage. He explained, “It fits our trade-in model, it appeals to our core customer base, and it is deeply embedded in physical retail.” Unlike software, trading cards offer a tactile experience, and unlike hardware, they carry high margin potential.
Trading Cards on GameStop’s Website
GameStop’s website already reflects this shift, featuring trading cards prominently at the top of the homepage, while Nintendo’s recently launched Switch 2 console is pushed further down. This change may surprise gamers, but some of the highest-value Pokémon and Magic: The Gathering cards on GameStop’s site sell for between $200 and $800—much more than the average video game.
Alongside the trading card focus, GameStop is investing in cryptocurrency. Last month, the company purchased approximately $500 million in bitcoin as part of its strategy to find new revenue streams. Additionally, GameStop continues to close stores to reduce costs.
What The Author Thinks
GameStop’s pivot to trading cards and cryptocurrency reflects a pragmatic approach to survival amid shrinking video game sales. Physical cards appeal to a niche but loyal audience and offer high margins, while crypto investments show the company’s willingness to explore new markets. However, relying heavily on collectibles and volatile assets carries risks. Trading card markets can be fickle, and crypto remains unpredictable. To truly turn around, GameStop must balance innovation with core gaming interests to avoid alienating its original customer base.
