Amazon is making significant changes to its video games division amid sweeping layoffs across the e-commerce giant. An undisclosed number of employees have been cut at Amazon Game Studios, a development move first reported by Bloomberg’s Jason Schrier and later confirmed by Variety. The cuts are part of a broader strategic realignment aimed at reshaping Amazon’s online gaming and digital entertainment strategy. Industry insiders say a substantial portion of AAA game development work is being paused or halted as the company pivots toward online services, live operations, and cloud-based gaming experiences. This shift signals a major reorientation for Amazon Games, Twitch, and related audio initiatives, under the leadership of Steve Boom, who oversees Amazon Games, Twitch, and the company’s audio ventures. Analysts note the layoffs reflect ongoing cost-cutting measures and strategic prioritization across Amazon’s expansive portfolio. For developers and investors, the changes underscore the evolving priorities of major tech publishers as they pursue profitability while pursuing ambitious online ecosystems and live-service content. In short, Amazon’s gaming unit is recalibrating its strategy to emphasize scalable online experiences over traditional AAA production, highlighting broader industry trends in cloud gaming and digital distribution.