The ongoing trend of video game industry layoffs, extending what can be described as a year of such occurrences, continues as Amazon joins the ranks.
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COLOGNE, GERMANY - AUGUST 23: A Visitor pass by the stand of amazon games at the 2023 Gamescom gaming fair on August 23, 2023 in Cologne, Germany. Gamescom is the world's largest computer and video gaming fair and will run until August 27.
Streamlining Gaming Division
Amazon's gaming division has recently experienced a reduction of approximately 180 positions, impacting the Game Growth team and personnel associated with Crown, an Amazon-backed Twitch channel. Engadget reported that the company is set to cut 180 positions within its games division.
The company's internal communication outlined a strategic reallocation of resources, with a heightened focus on growth areas, particularly emphasizing the delivery of free monthly games for Prime subscribers. The impact encompasses the complete disbandment of Crown Channel, an Amazon-supported Twitch channel, and the Game Growth team.
This move aligns with Amazon's broader strategy to shift its focus towards Prime Gaming, a facet of the Amazon Prime subscription that provides free games and in-game content. Amazon has officially confirmed the layoffs, sharing an internal email circulated among employees.
The internal email from Christoph Hartmann, VP of Amazon Games, indicated a shift in business focus, stating that the refinement of the Prime benefit to emphasize free monthly games is in response to customer preferences. These changes in business approach, however, result in the elimination of just over 180 roles.
Also Read: Amazon Halts Construction of Second Headquarters in Virginia, Following Layoffs
Amazon is facing its second wave of job cuts in the gaming division this year, following the first round in April, which saw the elimination of around 100 positions.
The decision follows an earlier restructuring in April, signaling a shift towards prioritizing customer preferences. Employees affected by the workforce reduction were reportedly informed on Monday morning.
Shutting Down Crown
In an attempt at synergy between Amazon and Twitch, Crown Channel faced challenges despite hosting elaborate events with streaming stars and occasional mainstream celebrities. Earlier this year, a report cast doubt on the channel's viewership, suggesting artificial inflation.
Following this, Crown is reportedly closing down following the release of its staff. Known for its original shows and content, The Verge reported that Crown aimed to emulate the traditional television experience, providing ad-supported programming. One of its notable shows, Screen Invaders, transformed mobile games into arcade and real-world experiences.
Crown had secured sponsorship from major companies such as Intel and Progressive. However, a Bloomberg report earlier this year raised concerns about the channel's metrics, suggesting that Amazon may have inflated its viewership numbers with "junk views," referring to individuals not actively engaged or serving any purpose for advertisers.
The channel's relatively modest follower counts and chat participants seemed to align with Bloomberg's findings, indicating that its popularity might have fallen below expectations.
Related Article: Amazon Conducts Fresh Layoffs, Affecting 100+ Employees from its Gaming Division
