GameStop Bets Big on Trading Cards: A Smart Business Move

GameStop is pivoting towards trading cards, particularly Pokémon, as a key part of its business strategy. During its 2025 Annual Meeting, CEO Ryan Cohen indicated that the company is focusing on trading cards as a natural extension of its retail model, emphasizing their high margin potential and alignment with the core customer base. This shift comes after the company reported its first profitable quarter since 2019. Despite the announcement leading to a decline in stock prices by 22%, there is a notable market demand for trading cards, especially after record sales demonstrated the collectible card industry's profitability. Additionally, the increase in trading card thefts further highlights the high-stakes nature of this market.

GameStop is focusing on trading cards because they align with the company's heritage, appeal to its core customer base, and offer higher profit margins than software and hardware sales. This move comes as the company aims to strengthen its business following a period of significant operational changes.

Trading cards, especially Pokémon cards, have gained immense popularity, with rare cards selling for millions. The market for these collectibles has expanded dramatically, prompting GameStop to explore this avenue more seriously. Collectibles and trading cards not only cater to nostalgic gamers but also attract new audiences, making them a potentially lucrative area for growth in the gaming retail space.