By-mail rental service GameFly looks toward a digital future, as 35 of its employees look for a new job. After layoffs today -- a spokesperson said 15-percent of the company, according to Joystiq -- CEO Dave Hodess stated the company is focusing on digital with a greater emphasis on software development. The layoffs also affected ShackNews.

Last year, GameFly picked-up digital download service Direct2Drive (renamed GF Digital). Perhaps GameFly knows for sure that the PS4 and next Xbox won't play used games and this is their best defense against becoming obsolete. Regardless, Hodess said the mail-in service will continue to exist.

"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."

Still waiting on that copy of Metal Gear Rising, GameFly. :nudge nudge:

GameFly restructuring causes layoffs [Joystiq, image courtesy of Sidewalk Dog]