GameStop CEO Ryan Cohen has stirred controversy after taking to X this week, where he appeared to place the blame for GameStop’s struggles—and its decision to exit markets in Canada and France—squarely on “wokeness” and Diversity, Equity, and Inclusion (DEI) policies.
The gaming retailer, which has faced mounting challenges over the last decade, announced plans to sell its operations in both countries. In an official release, GameStop said it was “evaluating its international assets” and intends to offload its Canadian and French branches. The company currently operates over 200 stores in Canada and nearly 650 across Europe.
Shortly after the announcement, Cohen posted on X, sharing his thoughts on the business climate in Canada and France. In his message, he cited “high taxes, progressive policies, wokeness, and DEI” as contributing factors to GameStop’s decision to pull out of these markets.
A post on X from GameStop CEO Ryan Cohen in which he rails against DEI in Canada and France – X, @RyanCohen
The blunt statement sparked immediate debate. While some saw Cohen’s post as an honest critique of the business environment in certain regions, others criticized it as deflecting from GameStop’s long-standing struggles in adapting to the evolving gaming industry.
The Decline of a Retail Giant
GameStop has been on a downward trajectory since its revenue peak in 2011 when it reported $9.55 billion in sales. By 2024, that figure had plummeted to $4.33 billion, a staggering 24% drop from the previous year alone. The shift toward digital game distribution, spearheaded by major players like Microsoft and Sony, has left traditional brick-and-mortar retailers like GameStop scrambling to adapt.
A screenshot from Halo 2: Anniversary (2020), 343 Industries
While many industry observers point to this digital transition as the primary reason for GameStop’s challenges, Cohen’s comments suggest he believes external social and economic policies played a significant role. Worker-friendly regulations, higher taxes, and DEI initiatives have, according to Cohen, placed additional burdens on businesses operating in regions like Canada and France.
A CEO Known for Stirring Debate
Cohen is no stranger to controversy. In 2022, he purchased a nearly 10% stake in Bed Bath & Beyond through his investment firm, only for the retailer to declare bankruptcy a year later. He’s also the co-founder of the successful pet goods company Chewy, giving him a mixed track record in the retail space.
His recent critique of DEI aligns with a broader national conversation. DEI programs, designed to promote representation and inclusivity in the workplace, have faced increased scrutiny in recent years. Critics argue that such initiatives can lead to unfair hiring practices, while supporters believe they are essential for fostering diverse work environments.
President Donald Trump speaks at CPAC in 2017 – YouTube, The New York Times
President Trump’s administration has taken a hard stance against DEI, moving to roll back these policies in both the public and private sectors. As a result, numerous companies, including Meta and Google, have scaled back their DEI commitments to align with the shifting political landscape. Others, like Apple and Costco, have chosen to maintain their initiatives despite growing pressures.
GameStop’s Future in Question
GameStop’s survival in recent years has been nothing short of remarkable. During the pandemic, the company became the poster child of the “meme stock” frenzy, where individual investors banded together to drive up its stock price, countering Wall Street’s short-sellers. This influx of capital allowed GameStop to stay afloat, even experimenting with ventures like an NFT marketplace.
However, as the meme stock craze faded, GameStop found itself grappling with the same challenges that had plagued it for years. The company’s decision to exit Canada and France marks a significant retreat and raises questions about its long-term viability.
A screenshot from Mass Effect Legendary Edition (2021), BioWare
Whether Cohen’s critique of “wokeness” and DEI will resonate with investors and consumers remains to be seen. For now, GameStop faces an uncertain future as it navigates the shifting landscape of the gaming industry while grappling with internal and external pressures.
Do you think DEI played a role in GameStop selling off retail locations? Sound off in the comments and let us know!
Cohen’s only doing this because he thinks his $1B investment in Chinese investment firm Alibaba is going to pay off. Ironic given it’s *China* (specifically, Mao) that codified DEI and they’re the ones trying to push it on the West knowing how destructive it is to any society. Why else would they have invested so heavily in the WEF?
When operating in woke socialists countries like Canada and France your business will inevitably suffer because of stupid regulations.