Looking at the Wiki entry for GAME, I can't say the company looks all that healthy regardless. I don't think it's entirely due to digital distribution however, so that part Notch can feel free to eat. "Administration" appears to be the UK's equivalent to bankruptcy/etc. The only reason they came out of it is because someone bought them. The same company that offered to buy them prior to them going into administration actually - but was refused.
From their practices listed on the wiki, they're not much different from Gamestop (And the references of electronic boutique, which was bought out by gamestop probably shows why...). So that part I'd have to admit he's right about. It would be fun to watch it's demise. As much fun as watching gamestop go bankrupt.
I'm more concerned with the loss of jobs rather than someone's opinion on a company that probably has no real effect on his industry. It's easy for Minecraft guy to say he's having "fun" watching the demise because he's made around $8 billion on his little game so far. I've been unemployed before and it's not "fun".
Devs have really got into pissypants mode the past couple of years, hiding behind the piracy and gamestop is bad labels. There have been a lot of good games out this gen, but some quality of games have gone down while the amount to make them have gone up. Gamers are just as much to blame as we can vote with our wallets, but most won't because they like their CoD every year.