Gaming is one of the most profitable industries these days, but Amazon seems to be having some trouble making the most out of it.
In a new memo that was shared by Reuters yesterday, Christoph Hartmann, vice president of Amazon Games, revealed that Amazon plans to cut around 180 jobs in its games division as part of a refocusing effort, one that will not only result in a bunch of pink slips being handed out, but also see the closure of at least two of its major gaming initiatives.
The first, Game Growth, is a platform that was developed by Amazon to help game makers market their games, while the second, Crown, is a gaming channel that the company hosts on Twitch.
Both of these will apparently be shuttered, although there’s some good news here for Prime members, as Hartmann explained that Amazon Games is planning to double down on free games as part of its new approach.
New projects that include Crystal Dynamics’ latest Tomb Raider game (Amazon is publishing) and The Lord of the Rings games also appear to be in good hands.
Here’s the full memo from Hartmann (via The Verge), which includes an explainer as to what his team is focusing on now:
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.
According to Reuters’ coverage, Amazon has also begun laying off people in its streaming music and podcasts division, as well as employees in a human resources unit.
Prime Gaming’s current freebies include Rage 2: Deluxe Edition, Centipede: Recharged, and DOOM 3, the 2004 survival horror FPS from id Software that introduced a revolutionary weapon to the series: a flashlight.
The offer for DOOM 3, which involves a GOG key, is set to expire in four days, so Prime members who haven’t claimed it yet may want to do so quickly.
Star Wars: Knights of the Republic is also coming later this month.