Amazon Is Called To Spend 500 Million Dollars/Year For The Games Division, But Still Low Yield

Amazon has been very successful with their e-commerce services, but the company owned by Jeff Bezos has continued to expand into various sectors in recent years ranging from digital streaming to video games. But it seems that for gaming, Amazon doesn’t have a really clear board of directors.

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According to a report from a Bloomberg journalist, two sources he interviewed said that Amazon was spending nearly “500 million dollars a year” on their gaming division not counting Twitch and their cloud gaming service, and so far have not produced tangible results.

The only game they’ve released so far is The Crucible and that game didn’t last long. After only a few months of release, the game was immediately pulled back into closed beta before being completely shut down due to lack of players.

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In addition to Crucible, Amazon has reportedly canceled many projects, one of which is the fantasy sports game project Breakaway and many projects that have not been announced to the public.

They are also developing another game called New World which originally wanted to be released last August 2020 but was delayed due to the covid-19 pandemic. They are also co-developers of the MMO game The Lord of The Ring but until now there is no new information.

Amazon has recruited many experienced developers from Kim Swift (Portal), Clink Hocking (Far Cry 2), and many more. However, their experience and skills are not utilized because division head Mike Frazzini is referred to as someone who has “no experience in the gaming world”. He is said to only rely on metrics for making decisions rather than asking for advice from the experienced developers he hires.

Many of the other problems mentioned in the article range from lack of incentives to work, the impression of a “bro culture” that makes female employees feel uncomfortable and cared for, and their own Lumberyard Engine which is said to be full of problems, making game development ineffective. You can read more about this information directly on Bloomberg.