Amazon has laid off several dozen employees in its gaming division, according to Kotaku, a games industry publication. Amazon told the publication it is still “deeply committed to games.”
Amazon owns Twitch, a popular live-streaming platform, but its division focused on developing video games—Amazon Game Studios—but has struggled to create and release popular products. Its game engine software used to build games, called Lumberyard, wasn’t sufficient to create multiplayer games that Amazon was hoping to make, according to The Wall Street Journal.
The layoffs shouldn’t be taken as the end of Amazon’s ambitions in gaming. Like Google, which has developed a cloud service to stream video games, Amazon is working on a game streaming service, we reported in January. That would be a significant shift, allowing people to use their smartphones or televisions to play games instead of buying expensive consoles.
Still, it’s a reminder that while Amazon may cause jitters when it enters a new market, it can also struggle to find its footing. The games division is an example of one of those stumbles.