amazon is ditching mmos and cranking out Amazon is making significant changes to its gaming division, including halting much of its first-party AAA MMO development and implementing substantial layoffs.
amazon is ditching mmos and cranking out
Overview of Amazon’s Gaming Strategy Shift
In a memo released today, Steve Boom, Vice President of Audio, Twitch, and Games at Amazon, announced that the company is making “significant” changes to its gaming division. This decision comes as part of a broader wave of layoffs across the organization. The memo indicates that Amazon is halting a considerable portion of its first-party AAA game development work, particularly focusing on massively multiplayer online games (MMOs).
“While we’re proud of our successes in first-party AAA game development and publishing, we have made the difficult decision to halt a significant amount of our first-party AAA game development work – specifically around MMOs – within Amazon Game Studios,” Boom stated. This decision will lead to substantial role reductions in Amazon’s studios located in Irvine and San Diego, as well as within its central publishing team.
Current MMO Projects and Their Status
Amazon’s current lineup of MMOs includes titles such as New World: Aeternum, Throne and Liberty, and Lost Ark, the latter of which had a promising start in 2022. In 2023, the company announced plans to develop a Lord of the Rings MMO in collaboration with Embracer Group. However, the company also faced setbacks, including the cancellation of a planned western release for the Bandai Namco-developed MMO Blue Protocol, which was ultimately shut down in Japan in January.
The decision to halt MMO development reflects a broader trend in the gaming industry, where the competitive landscape has become increasingly challenging. Many companies are reassessing their strategies to adapt to changing consumer preferences and market dynamics.
Focus on Casual and AI-Driven Games
Despite the significant cutbacks in MMO development, Amazon is not entirely withdrawing from the gaming sector. Boom emphasized that the company is still committed to exploring other gaming avenues. He pointed to the recent launch of the revamped Luna, Amazon’s cloud gaming service, which aims to deliver a diverse catalog of games, including social party games and AAA blockbusters.
“Luna is a great example of how we will have an impact with customers that fits the scale of Amazon,” Boom noted. The service is designed to integrate streaming entertainment with gaming, providing added value for Amazon Prime members. The Studio 5 team, which recently developed a courtroom game featuring an AI version of Snoop Dogg for Luna, will continue to focus on casual and AI-driven games optimized for the platform.
Upcoming Projects and Collaborations
Amazon’s gaming division is still active in several key projects despite the layoffs and strategic shifts. Boom highlighted a “successful closed alpha” for the multiplayer online battle arena (MOBA) game March of the Giants, indicating that the Montreal studio is making progress toward completing the game.
Additionally, Amazon is collaborating with established studios on high-profile projects. The company is working with Crystal Dynamics on a new Tomb Raider game, which is expected to attract significant attention given the franchise’s popularity. Furthermore, Amazon is partnering with Maverick Games on an open-world driving game, showcasing its commitment to diversifying its gaming portfolio.
Implications of the Layoffs and Strategic Changes
The layoffs and strategic changes within Amazon’s gaming division have raised questions about the company’s long-term vision for gaming. The decision to scale back on MMO development suggests that Amazon is recalibrating its approach to focus on more manageable and potentially profitable gaming experiences.
Industry analysts have noted that the gaming market is becoming increasingly competitive, with established players like Microsoft and Sony investing heavily in exclusive titles and innovative gaming experiences. Amazon’s pivot towards casual and AI-driven games may be a strategic move to carve out a niche in this crowded space.
Reactions from Stakeholders
The announcement has elicited various reactions from stakeholders within the gaming community. Some industry experts view Amazon’s decision to halt MMO development as a pragmatic response to the challenges faced by the genre, which has seen fluctuating player engagement and increasing development costs.
Others, however, express concern about the implications of these layoffs for the affected employees and the overall morale within Amazon Game Studios. The memo from Boom acknowledges the difficulty of the situation, stating, “There is no getting around the fact that days like this are hard, and we will be losing team members whose work and dedication have had an incredible impact on our customers over the years.”
Future Outlook for Amazon Gaming
As Amazon navigates this transitional phase, the future of its gaming division remains uncertain. The company’s decision to pivot away from MMOs may allow it to focus on more scalable and less resource-intensive projects. However, the success of this strategy will depend on the execution of its upcoming titles and the ability to attract a loyal player base.
The gaming industry is known for its rapid evolution, and Amazon’s ability to adapt to changing trends will be crucial. The focus on casual games and AI-driven experiences may resonate with a broader audience, especially as gaming becomes increasingly integrated with social and streaming platforms.
Conclusion
Amazon’s recent announcement marks a significant turning point for its gaming division. The decision to halt first-party AAA MMO development and implement layoffs reflects the company’s need to reassess its strategy in a competitive landscape. While the future of Amazon’s gaming endeavors remains to be seen, the focus on casual and AI-driven games may provide a new direction that aligns with the company’s broader goals. As the gaming industry continues to evolve, Amazon’s ability to innovate and adapt will be key to its success.
Source: Original report
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Last Modified: October 29, 2025 at 12:36 am
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