Major Overhaul in Amazon's Gaming Division Amid Layoffs

October 29, 2025 - 02:41

Amid sweeping layoffs that began throughout ecommerce giant Amazon Tuesday, the company is making "significant" changes to its video games business. The restructuring will result in a halt to a substantial amount of AAA game development, signaling a shift in focus for the gaming unit. This decision comes as part of a broader strategy to streamline operations and adapt to the evolving landscape of the gaming industry.

Sources indicate that the company plans to pivot towards enhancing its online gaming strategy, which may include an increased emphasis on live-service games and digital offerings. This shift reflects a growing trend in the industry, where player engagement and ongoing content updates are becoming increasingly important for long-term success.

The layoffs and restructuring have raised concerns among employees and industry analysts alike about the future of Amazon's gaming endeavors. As the company navigates these changes, it remains to be seen how this will impact its position in the competitive gaming market.