Amazon is carrying out substantial staff reductions within its video game division, a move that's part of a larger, sweeping layoff initiative. This initiative will lead to the elimination of more than 14,000 corporate roles. While the exact figure for job cuts in the game division remains undisclosed, it's clear that the Irvine and San Diego offices, along with the core publishing arm, will experience significant reductions.

At the same time, Amazon plans to scale back its investment in high-budget game projects, with a particular focus on reducing its involvement in MMO (Massively Multiplayer Online) game development. Instead, the company is channeling its resources into areas where it holds a competitive edge. One such area is the Luna cloud gaming service, where Amazon is ramping up its investment.

The Montreal studio will keep developing March of Giants and will also roll out 'casual and AI-centric' games for the Luna platform. Additionally, projects from external partner studios are making steady progress. Over the past ten years, Amazon has struggled to make notable inroads in the gaming industry. This latest adjustment indicates a gradual shift away from heavy involvement in online gaming.

New World, one of Amazon's gaming offerings, will halt content updates, although its servers will continue to operate until 2026. Recently, Amazon released two games: Court Chaos and Meat Tyrant. However, the market response to Meat Tyrant has been rather tepid.