Home News Amazon Games Hit by 14,000 Layoffs, Shifts Focus from MMOs to AI and Casual Games

Amazon Games Hit by 14,000 Layoffs, Shifts Focus from MMOs to AI and Casual Games

Amazon has revealed that it will lay off about 14,000 workers worldwide, with its gaming division being the most severely affected. In favor of casual and AI-driven projects, the company is drastically reducing its first-party game development efforts, particularly in MMOs.

MMOs Suffer

Amazon confirmed it will stop a “significant amount” of first-party AAA development work, especially around MMOs. The layoffs are said to impact teams working on projects like New World and the previously announced The Lord of the Rings MMO, as well as the Irvine and San Diego studios.

The recent Season 10 and Nighthaven update, which the New World team also disclosed, will be the game’s last significant content release, thereby bringing its lengthy update cycle to a close.

A Strategic Transition to Casual Games and AI

Streaming, cloud computing, and entertainment integration are now the company’s main priorities. With a focus on “more casual and AI-focused games” that are tailored for the Luna ecosystem, the company intends to concentrate its gaming efforts around its cloud platform, Amazon Luna.

This action implies that Amazon is moving away from large-scale, expensive projects and toward scalable, less risky games that make use of cloud gaming technology, AI, and live-service systems.

To put it briefly, Amazon Games is going through one of its largest reorganizations to date, reducing its ambitions for massively multiplayer online games and placing more bets on AI-driven and cloud-powered gaming experiences.

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amazon amazon 14000 layoffs amazon ai games amazon casual games amazon games amazon layoffs amazon mmorpgs MMORPG new world

Sai T.

Sai is a social media manager and senior web content creator who spends his days juggling game research, deadlines, and the usual existential crisis. When he isn’t crafting content that hopefully goes viral, he’s a dedicated single parent doing his best to navigate work life balance. And in the rare moments when free time actually appears, he’s usually found with his two dogs, who are fully convinced they’re the ones in charge.