Ya for sure in this case the platform that hosts the downloads is going down, but that was never the promise of distributed platforms like this. It's more like owning a CD that still requires an internet connection to download the updates.

You're free to give that CD to anyone you want, but if the publisher shuts down the server you're shit out of luck.

In theory someone else could come along, leverage that some blockchain and let people get access to their games again (this isn't actually going to happen)

Now I know I'm making a lot of assumptions on how this platform actually implemented blockchain and such, but that is how the technology under the hood works. The part that I assume breaks this is that i bet that the company actually maintained private keys on behalf of the users, and if users didn't actually have their private key then there was actually no benefit to the blockchain and it was just a marketing ploy.