Amazon has recently made substantial changes in its gaming division, leading to the loss of over 180 jobs and the discontinuation of several projects. Christoph Hartmann, the Vice President of Amazon Games, communicated these developments to employees, emphasising the need to focus resources on producing high-quality games.
Downsizing and project closures
The restructuring process involves the shutdown of the Crown channel on Twitch and the termination of the Game Growth program, which supported game developers in marketing their endeavours. Additionally, Amazon is refining its approach towards the free games offered through Prime Gaming, in response to customer preferences for monthly free game offerings.
Broad impact and future plans
These adjustments follow earlier layoffs in April, impacting over 100 staff in different areas, including Prime Gaming and Game Growth. These changes are part of a larger trend of job reductions across Amazon this year. Despite these setbacks, the company remains committed to its gaming initiatives, which include the operation of Twitch, the MMO New World, and upcoming projects like the Bandai Namco MMO Blue Protocol and a new Lord of the Rings MMO.
Hartmann's comprehensive memo
In his memo, Hartmann reiterates Amazon's goal to become a leading creator of high-quality gaming content. This ambition necessitates ongoing experimentation and reassessment of their strategies. The closure of Crown Channel and Game Growth, paired with the refocused effort on Prime Gaming, reflects a strategic reallocation of resources towards more promising areas.
Hartmann also acknowledges the impact of these changes on the employees, assuring them of support through severance pay, outplacement services, and health benefits. He maintains a positive outlook on the future of Amazon's gaming ventures, citing upcoming projects like Throne and Liberty, Blue Protocol, and new collaborations with Glowmade and Disruptive Games.
The road ahead
Amazon's latest strategy adjustments indicate a commitment to refining its gaming portfolio and concentrating on areas with the most growth potential. While these changes bring challenges, particularly for the affected employees, the company's leadership is optimistic about its future direction in the gaming industry.
