The new GameStop CEO is calling for "extreme frugality"

Before the COVID-19 pandemic and its recent community-infused bull run, GameStop had started losing relevance. The company went on a slippery slope towards irrelevancy in the 2010s as companies pivoted more towards digital games. A majority of developers and publishers aren't afraid to release their games exclusively on digital platforms these days. This is on top of the incentives given for ordering digital copies over physical ones, such as early access, among others.

The only advantage of physical games now is total ownership, which isn't saying much when it can add to the clutter in your home. Although, if you spent years collecting physical copies, it does make for quite the statement piece in your room.

Since stepping in as Executive Chairman earlier this year, Cohen has taken over the company's business strategy, capital allocation, and day-to-day operations. He has also since purchased $10 million worth of GameStop shares, further proving that he's all-in on helping GameStop, not just survive, but thrive.

It remains to be seen if Cohen's focus on getting the company's financials in order by cutting costs over prioritizing the company's immediate growth will work, but it's an approach that has proven itself time and time again. If nothing else, investors should view this relatively basic but effective turnaround plan as a positive development for the future of GameStop.