Amazon’s video gaming division faces layoffs affecting over 100 employees
Amazon has reportedly laid off over 100 employees in its video gaming division, which includes studios such as Amazon Game Studios, Relentless Studios, and Amazon Web Services. The affected employees were laid off with early notice and the layoffs were part of Amazon’s restructuring efforts.
In recent years, Amazon has been investing heavily in the video gaming industry, launching new studios and games, and acquiring the well-known game streaming platform Twitch. However, despite these efforts, the company has faced setbacks in the highly competitive market.
According to reports, Amazon’s video gaming division has been struggling to gain traction in the industry, with some of its games failing to attract a significant audience. The division has also faced criticism for its lack of innovation and originality, with many of its games being perceived as clones of popular titles from other developers.
The layoffs are seen as a move to consolidate and streamline Amazon’s video gaming business, which has been struggling to compete with established players in the industry, such as Electronic Arts and Activision Blizzard. It is not yet clear which teams or projects have been affected by the layoffs, but sources suggest that some of the projects in development have been put on hold or canceled.
This news comes just a few months after Amazon canceled its upcoming MMORPG game, New World, which was highly anticipated by fans. The company cited the need for more development time and changes to the game’s mechanics as reasons for the cancellation.
Despite these setbacks, Amazon remains committed to its video gaming division and has plans to continue investing in the industry. The company recently announced that it is developing a new cloud gaming service called Luna, which allows users to stream games on their devices without the need for expensive hardware.
The success of Luna will be critical for Amazon’s video gaming division, as the company seeks to establish a foothold in the growing market for cloud gaming. Cloud gaming allows players to access games from any device with an internet connection, eliminating the need for expensive hardware and providing greater flexibility and convenience.
Amazon is not the only tech giant to face challenges in the video gaming industry. Google’s cloud gaming service, Stadia, was shut down in 2021 after failing to attract a significant user base. However, some analysts believe that Amazon’s deep pockets and vast resources give it an advantage over its competitors in the industry.
In the wake of the layoffs, many employees in Amazon’s video gaming division have taken to social media to express their disappointment and frustration. Some have criticized the company for its lack of transparency and communication during the layoffs, while others have expressed concern about the future of the division and the projects that were in development.
The layoffs also raise questions about the future of Amazon’s strategy in the video gaming industry. Some analysts suggest that the company may need to shift its focus away from traditional game development and towards other areas, such as cloud gaming or game streaming.
Despite the challenges, Amazon is likely to remain a player in the video gaming industry in the years to come. The company’s vast resources and commitment to innovation make it a formidable competitor, and its success with other businesses, such as e-commerce and cloud computing, suggest that it can adapt and succeed in a rapidly changing market.