Amazon guts game studios for AI pivot
Amazon eliminated more than 14,000 corporate positions on Thursday, with its video games division absorbing what executives described as substantial cuts. Steve Boom, who oversees audio, Twitch, and games for the company, announced that Amazon will cease development of massively multiplayer online games, despite previous success with titles such as New World.
The Seattle-based retailer confirmed that closures affect studios in Irvine and San Diego, as well as its central publishing operations. Senior executive Beth Galetti attributed the reductions to Amazon’s increased investment in artificial intelligence technology, which the company views as transformative, akin to the internet’s emergence.
Amazon has not clarified whether it will continue other game development efforts or exit the industry entirely. The company maintains production of television adaptations based on gaming properties, with its Fallout series drawing large audiences and Wolfenstein and Mass Effect projects in development.
