E-commerce giant Amazon continues to face issues with its staff for months as it continues to lay off people. Just days after Amazon laid off people from a different team, the internet giant’s gaming division is undergoing a significant restructuring, resulting in the elimination of 180 jobs and the closure of two business units.
The company is shutting down the Crown Channel, a platform on its live streaming site Twitch that featured gaming celebrities providing variety-show entertainment. Additionally, the Game Growth unit, which assisted creators in promoting their gaming titles, is also being shuttered.
The decision to streamline operations is part of Amazon’s strategic shift towards concentrating on game development and distribution through its Prime subscription service, say sources close to the management.
Christoph Hartmann, Amazon’s Vice President of Games, outlined the changes in a memo to the staff, emphasising the company’s commitment to meeting customer preferences. “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,” said Hartmann.
Amazon has faced challenges in establishing itself as a major player in the gaming industry, with several costly failures before achieving success with the release of the game New World in 2021. Notably, the company also published the widely popular multiplayer role-playing game Lost Ark, developed by South Korea’s Smilegate.
The closure of the Crown Channel marks the end of Amazon’s investment in paying substantial amounts to popular video-game streamers for appearances on the platform. While the company asserted its position among Twitch’s top 10, a report from Bloomberg earlier this year highlighted concerns about a significant portion of viewers being categorized as “junk views,” indicating individuals not actively engaged with the content.
This restructuring is the second for Amazon’s gaming business in 2023, following a previous round of job cuts involving 100 positions in April.
Despite the changes, Hartmann affirmed the company’s commitment to game development, with plans to release titles such as Throne and Liberty, Blue Protocol, and adaptations of iconic franchises like Tomb Raider and The Lord of the Rings.
Hartmann expressed confidence in the future of Amazon’s gaming division, stating, “I remain confident in our future. We are developing and publishing great games with high potential, our studio teams are growing, and our road map is bright.”
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