UK retailer Game done in by digital distribution - Notch

Digital distribution led to the demise of United Kingdom specialty retailer Game, Minecraft creator Markus "Notch" Persson told GameSpot at a recent event.

Responding to a question regarding Game, Persson explained that the proliferation of digital delivery services was a contributing factor to the company's current condition.

"I think [Game's closure] is an unfortunate side effect of digital distribution," he said. "And I think digital distribution is saving gaming. So I'm kind of torn. I think [Game's closure is] very sad, but I think it's also very fun. So it's hard to be happy or sad about it."

The digital market has been a boon for Persson and Mojang. Recent financial filings showed Mojang has hauled $80 million from Minecraft since October 2010.

The broadband gaming sector is also proving prosperous for established international brick-and-mortar retailer GameStop. Last week, the specialty retailer reported a 57 percent year-over-year surge in revenues from digital channels.