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Amazon cuts more than 180 jobs in gaming division

Thick Thighs Save Lives

NeoGAF's Physical Games Advocate Extraordinaire
Amazon on Monday announced it will cut more than 180 jobs in its Amazon Games division as it refocuses its efforts on Prime Gaming, according to an internal company memo viewed by CNBC.
The company will close its Game Growth and Crown Channel initiatives as part of the restructuring. Now, Amazon will focus on upcoming launches such as “Throne and Liberty” and “Blue Protocol,” as well as future initiatives such as “Tomb Raider” and “The Lord of the Rings” games, Christoph Hartmann, vice president of Amazon Games, wrote in the memo to employees.

“I know this is difficult news and that the impact will be felt widely,” Hartmann wrote. “It never feels good to say goodbye to colleagues. This isn’t a decision the leadership team came to quickly; it was the result of extensive considerations and road mapping for our future.”
Shares of Amazon were down less than 1% Monday.

The latest job cuts at Amazon come as CEO Andy Jassy has been in cost-cutting mode over the past year as the company has battled high interest rates and inflation. As a result, Amazon has carried out the largest layoffs in its history, cutting 27,000 jobs since last fall. The company also froze corporate hiring, and Jassy has looked to trim expenses in units across the company.
In October, Amazon reported third-quarter earnings that suggested its cost cutting has been paying off. The company’s revenue rose 13% to $143.1 billion in the third quarter, while net income more than tripled to $9.9 billion from $2.9 billion a year earlier.

Hartmann wrote that after further evaluation of the Amazon Games business, the company decided it needed to focus its efforts and resources “to deliver great games to players now and in the future,” according to the memo.
 

StreetsofBeige

Gold Member
Too lazy to google it, but anyone know the details why Amazon got into Twitch and making video games?

They truly felt they could make bank on this stuff? Or just avenues to get young people to buy shit on Amazon?
 

StueyDuck

Member
They did a real...... 180.... on their gaming plans didn't they.
joke drums GIF by neomagazinroyale


i'm here all week
 

Mibu no ookami

Demoted Member® Pro™
Gaming is big business, but it's really hard. The margins aren't as high as people think and failure is pretty commonplace.

They haven't had any success in creating successful games.

It's why Microsoft going through with the 70 billion dollar purchase of ABK was such a head-scratcher when all of these regulators gave them an out.
 

StreetsofBeige

Gold Member
Gaming is big business, but it's really hard. The margins aren't as high as people think and failure is pretty commonplace.

They haven't had any success in creating successful games.

It's why Microsoft going through with the 70 billion dollar purchase of ABK was such a head-scratcher when all of these regulators gave them an out.
Gaming is hard as it's an industry anyone can get into and anyone can buy it across the world (assuming the game supports their language). A group of 5 dudes living in Iowa can make an indie game after dinner if they wanted to and maybe it'll be a hit globally. Not saying it'll be a blockbuster hit. But the gaming pie is only so big. So when your got a million games spanning from free to $70 and the industry has trended to GAAS where you got some people who probably spend 99% of their money and time on a popular title that is now at Season 12 for the past 4 years, it means the rest of the game studios get crowded out with fewer potential gamers.

On the other hand, Joe and Janets bakery in Bumfuck USA can be successful because they have enough sales from a local customer base to get buy with 200 customers per day. Their bakery might have a good foothold in that neighbourhood, which nobody else can or will bother trying to take over.
 
Gaming is hard as it's an industry anyone can get into and anyone can buy it across the world (assuming the game supports their language). A group of 5 dudes living in Iowa can make an indie game after dinner if they wanted to and maybe it'll be a hit globally. Not saying it'll be a blockbuster hit. But the gaming pie is only so big. So when your got a million games spanning from free to $70 and the industry has trended to GAAS where you got some people who probably spend 99% of their money and time on a popular title that is now at Season 12 for the past 4 years, it means the rest of the game studios get crowded out with fewer potential gamers.

On the other hand, Joe and Janets bakery in Bumfuck USA can be successful because they have enough sales from a local customer base to get buy with 200 customers per day. Their bakery might have a good foothold in that neighbourhood, which nobody else can or will bother trying to take over.
With the advent of edible gaming controllers, Joe and Jane's time is up.
 
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