Is this for getting the shrink wrap off of a new CD case? Because I can't imagine needing a tool otherwise.

Yes, there's a recessed blade. I don't remember needing a tool for the wrap though either, and I never saw one of these in reality. They seem to have been common swag though: MySpace https://old.reddit.com/r/nostalgia/comments/95tooc/myspace_e..., Napster https://autonomic.guru/found-items-cd-case-opener/.

I remember actually using these and them not working very well, or not well enough to actually remember you had one and go get it from the drawer.

But it sure does make me nostalgic!