You win, Steam: GameFly sells its PC digital-distribution service

The game rental-by-mail service GameFly is getting out of digital PC gaming.

The company revealed today that it sold off its GameFly Digital business to AtGames, which will continue to operate the service (as Game Politics first spotted). GameFly Digital enabled gamers to purchase download versions of games. The company purchased the Direct2Drive digital platform from multimedia gaming site IGN in 2011 and turned it into GameFly Digital. The rental service positioned this as a way to build a more future-proof business, but it also put it in direct competition with Valve’s popular Steam client.