Amazon has opted to discontinue its gaming content channel, concurrently executing substantial layoffs within its games division.
The corporation is reducing its workforce by a margin exceeding 180 positions in the gaming sector, while also altering its approach to the provision of free games for Amazon Prime subscribers.
In a communication disseminated to staff members by Christoph Hartmann, Amazon Games' Vice President, it was revealed that the restructuring encompasses the closure of the Crown channel, an entity streaming on Twitch. Additionally, Amazon is terminating its Game Growth initiative, designed to assist game developers in marketing their products, and is strategically "refocusing" its endeavors related to the complimentary games offered through Prime Gaming.
Hartmann articulated, "We take pride in the endeavors undertaken by our teams, delving into uncharted territories with the weekly content on the Crown Channel and identifying novel avenues to assist publishers in reaching untapped audiences through Game Growth." However, after a comprehensive evaluation of their business operations, a clear need arose to channel their resources and efforts towards delivering exceptional games to players both presently and in the future. Reuters initially reported on this development earlier today, and the complete email shared by Amazon with The Verge can be perused at the conclusion of this narrative.
Addressing the free games accessible through Prime Gaming, Hartmann emphasized responsiveness to customer feedback, stating, "We've attentively listened to our patrons, recognizing their foremost desire for complimentary games every month. Consequently, we are fine-tuning our Prime benefit to heighten our focus in that direction." Amazon spokesperson Brittney Hefner declined to elaborate further on the specifics of these alterations.
This recent wave of changes follows a previous announcement in April, wherein Amazon disclosed the dismissal of over 100 personnel in its games division, affecting individuals in Prime Gaming, Game Growth, and the San Diego studio. Amazon has, on a broader scale, executed substantial job cuts throughout the current year.
Apart from its prominent ownership of Twitch, Amazon manages an array of gaming initiatives, operating the MMO New World and publishing Lost Ark. Future plans involve the publication of Bandai Namco's MMO, Blue Protocol, and the upcoming Tomb Raider installment, coupled with ongoing development on a new Lord of the Rings MMO.
The ensuing is an unabridged excerpt from Hartmann's memo:
"Hello everyone,
I have some important news to share with you all today about the future of our business.
As I’ve shared previously, our goal for Amazon Games is to become one of the leading creators of high-quality gaming content that delights players for years to come. Part of this bold vision involves experimentation as we explore what gamers want most and we regularly review these experiments to ensure we’re creating the most impact.
After our initial restructuring in April, it became clear that we needed to focus our resources even more on the areas that are growing with the highest potential to drive our business forward. As such, the leadership team and I have made the difficult decision to close two of our initiatives – Crown Channel and Game Growth. We are also refocusing our efforts for Prime Gaming. We’ve listened to our customers and we know delivering free games every month is what they want most, so we are refining our Prime benefit to increase our focus there. With these changes in our business approach come changes to our resourcing, resulting in the elimination of just over 180 roles.
I know this is difficult news and that the impact will be felt widely. 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. We are proud of the work the teams have been doing, pushing into new areas with weekly content on Crown Channel, and finding more ways to help publishers reach new audiences with Game Growth. But after further evaluation of our businesses, it became clear that we need focus our resources and efforts to deliver great games to players now and in the future.
Each employee whose role has been impacted should now have a live meeting scheduled this morning so we can discuss these changes directly. We are also working to ensure all impacted employees are given the support they need on an individual level, including severance pay, outplacement services, health insurance benefits and more. Your managers, business leaders and HRBPs are available for conversations and we have a licensed counselor available 24/7 through our Employee Assistance Program.
I recognize that this is the second time this year that you are hearing about org-wide team changes and seeing colleagues go, so let me be very clear when I say this: I remain confident in our future. We are developing and publishing great games with high potential, our studio teams are growing, and our roadmap is bright. We are focused on our upcoming publishing launches for Throne and Liberty and Blue Protocol, as well as future projects like our Tomb Raider and The Lord of the Rings games, and our projects with Glowmade and Disruptive Games. Our internal studios are actively recruiting and hiring to fill critical roles as they develop new IP, while Prime Gaming continues to secure deals and deliver compelling content for members every month. We are committed to our vision of becoming one of the leading developers and publishers of high-quality games, and focusing our resources accordingly will help us get there."