NazirAmazon Games, the gaming division of Amazon.com Inc., announced on Nov. 13, 2023 that it would close its Crown channel on Twitch and cut 180 jobs as part of a restructuring effort. The Crown channel was a Twitch channel that featured original programming, such as shows about mobile gaming, esports, and trivia. Amazon said the channel was among Twitch’s top 10 entertainment channels, attracting tens of thousands of viewers and big-name advertisers.
However, a Bloomberg analysis revealed that the Crown channel was not as popular as Amazon claimed. Many of the viewers were not actively watching the content, but were simply scrolling through the Twitch home page, where Amazon paid to promote the channel. The channel also had low engagement rates, such as followers and chat participants, compared to other Twitch channels. Some advertisers may have been misled by the inflated audience numbers and paid high prices to sponsor the channel.
The closure of the Crown channel is the latest setback for Amazon Games, which has been struggling to make a mark in the gaming industry for years. The division has faced several challenges, such as delays, cancellations, technical issues, and internal conflicts. Amazon has invested billions of dollars in gaming, but has yet to produce a hit game or a profitable business model.
Amazon Games also announced that it would shut down its Game Growth group, which was a team that helped independent developers publish and market their games on Amazon’s platforms. The group was launched in 2020, but failed to attract enough developers and revenue. Amazon said it would focus on its core gaming services, such as AWS, Twitch, and Prime Gaming.
Amazon Games is not giving up on gaming, however. The division said it would continue to work on its existing and upcoming projects, such as New World, Lost Ark, and The Lord of the Rings. It also said it would renew its focus on offering free games to its Prime members, as well as supporting its gaming communities and creators.
Read Also: TikTok denies anti-Israel bias as US lawmakers and critics call for a ban
Amazon Games
Amazon Games is the gaming division of Amazon.com Inc., which was founded in 2012. The division aims to create, publish, and distribute games for various platforms, such as PC, console, mobile, and cloud. Amazon Games also operates several gaming-related services, such as AWS, Twitch, and Prime Gaming.
Amazon Games has a vision to become a leading force in the gaming industry, leveraging its vast resources, technology, and talent. However, the division has faced many challenges and difficulties in achieving its goals. Some of the problems that Amazon Games has encountered include:
Delays and cancellations: Amazon Games has announced several ambitious projects over the years, but many of them have been delayed or cancelled due to various reasons, such as technical issues, creative differences, market changes, and poor feedback. Some of the notable examples are Crucible, Breakaway, and The Grand Tour Game.
Lack of hits and innovation: Amazon Games has not been able to produce a hit game or a breakthrough innovation that can compete with the established players in the gaming industry. Most of the games that Amazon Games has released or is working on are either derivative of existing genres or have failed to attract a large and loyal fan base. Some of the examples are New World, Lost Ark, and The Lord of the Rings.
Internal conflicts and culture clashes: Amazon Games has experienced several internal conflicts and culture clashes among its staff, management, and partners. Some of the issues that have been reported are high turnover, unrealistic expectations, micromanagement, harassment, and interference. Some of the examples are the departure of several key executives and developers, the dispute with Tencent over Leyou Technologies, and the lawsuit with Bethesda over Fallout Shelter Online.
Low profitability and return on investment: Amazon Games has invested billions of dollars in gaming, but has not been able to generate a significant profit or return on investment. The division has been operating at a loss for years and has not been able to justify its existence to the shareholders and the public. Some of the factors that have contributed to the low profitability and return on investment are the high development costs, the low sales and revenue, and the negative publicity and reputation.
These are some of the main challenges and difficulties that Amazon Games has faced and is facing in the gaming industry. The division is not giving up on gaming, however. It is still working on improving its existing and upcoming projects, as well as expanding its gaming services and communities. It is also exploring new opportunities and partnerships in the gaming market. Amazon Games hopes to overcome its problems and achieve its vision of becoming a leading force in the gaming industry.
Nazir
