Some unfortunate news this week for Gamefly subscribers as the company announced they'll be shutting down their streaming gaming service. Variety broke the news earlier today that subscribers to the service have been receiving notices of the shutdown, letting players know they will not be charged after that date but that they will no longer be able to stream games on their Cloud-based service. The company will continue to move forward with their disc-based rental system for games on September 1st and have given no indication that there are other plans in the works at this time for digital distribution.
There's really no other way to put it other than "this sucks." Gamefly was basically a Netflix-esq option to gaming for those who hated rental systems and didn't want to buy physical discs or the full game to own. Considering the way gaming media is headed, it was logical to assume that Gamefly would be on the forefront of Cloud-gaming, which is a system companies like Electronic Arts are moving towards. The only reason we can foresee for shutting it down is that the subscriber base just wasn't there, and somehow, their physical releases were doing better than digital ones. Hopefully, Gamefly will open up and give a reason to the public now that the word is out.