Layoffs at GameFly

Restructuring at GameFly has led to a round of layoffs affecting 15 percent of the company, Joystiq reports. GameFly CEO Dave Hodess released a statement on the matter to the site, saying no significant changes will come to pass as a result of the cuts.

"We studied our business and determined that we could operate with a smaller team while continuing to provide the same high level of service to our customers," Hodess said.

"Aside from a greater focus in our software development efforts, we're not making any significant changes in our console subscription or digital download businesses. GameFly remains profitable with a strong balance sheet."

Future generation consoles from Microsoft and Sony are believed to emphasize digital distribution, which could spell trouble for a company like GameFly. However, in addition to the company's by-mail service, the firm owns the Direct2Drive platform, allowing gamers to purchase and play PC titles.

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