Amazon Restructures, Axes Jobs in Video Game Sector Amid Major Layoffs

Amazon (company) is restructuring its video game sector, cutting over 14,000 jobs and halting first-party AAA (video game industry) development, raising concerns about the future of Amazon Games.

In a memo from Steve Boom, vice president of Audio, Twitch (service), and Games, Amazon (company) announced a significant reduction in its first-party AAA (video game industry) game development work.
The layoffs, part of a broader corporate restructuring, will eliminate more than 14,000 jobs across Amazon (company), impacting various sectors, including its video game developer teams.
Amazon Games, based in Irvine, California, and San Diego, will specifically halt development of massively multiplayer online game projects, reflecting challenges in the competitive gaming landscape.

Why It Matters

The cuts at Amazon (company) highlight the ongoing challenges in the video game industry, particularly for major players like Amazon Games, as they navigate shifting market demands and profitability concerns.