Amazon Retreats from MMO Development
Amazon Games has been gutted as the company cuts over 14,000 corporate jobs. Amazon is halting work on first-party big-budget massively multiplayer online (MMO) games. They’re also laying off large chunks of its gaming studios and publishing teams. This includes cuts at its Irvine and San Diego studios, as well as reductions in its central publishing division.
Amazon’s most successful MMO, New World will no longer receive new content updates. However, the game will still be active through 2026. Nobody knows what’s going to happen to the Lord of the Rings MMO the company announced back in 2023. Amazon will continue to support outsourced titles like Throne and Liberty and Lost Ark, but its own first-party projects are being shelved.
A Strategic Pivot, Not a Passion Project
This isn’t about layoffs or a misstep. It’s about Amazon’s approach to gaming. The company has never been passionate about creating games. Gaming is just another avenue to diversify profits. To dabble in trends that will make the tech giant appear relevant.
Instead, Amazon is doubling down on its so-called “strengths”: cloud gaming via Luna and AI-driven gameplay. Luna offers casual party games, often bundled with Prime subscriptions. Meanwhile, Amazon is exploring AI-focused multiplayer titles, like Courtroom Chaos: Starring Snoop Dogg.
Twitch as a Cautionary Tale
Just look at what’s happening with Twitch. The streamers platform has been unprofitable for years. The leadership in charge of Twitch have allowed the platform to turn into a cesspool. Streamers care more about getting viewers to subscribe over providing a quality experience. Certain streamers get special treatment no matter what they do on stream. Then there’s the tone-deaf way they handled Emiru’s assault at this year’s TwitchCon. Amazon’s gaming ambitions lack the commitment needed to be successful.
The Fallout for Developers
For the studios, developers, and publishers caught in the middle, these changes are painful. Projects are in limbo. Teams face layoffs. Yet in a way, this is probably for the best. It shows that Amazon’s priorities lie elsewhere. They weren’t invested enough to see their projects through. Trying to force the issue would have caused more trouble than it’s worth. The company never cared enough to fully commit to AAA games. What’s striking is the pattern of opportunistic, half-hearted engagement across the industry. Gaming, for Amazon, was never about the craft. It was about the optics, trends, and the potential to leverage another revenue stream.
