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Amazon Restructures Gaming Division, Shifts Focus to Casual Games

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Amazon Restructures Gaming Division, Shifts Focus to Casual Audiences

Amazon has consolidated its gaming efforts—Prime Gaming, Amazon Game Studios, and Luna—into one unified division under general manager Jeff Gattis, who joined the company in March 2025. The restructuring marks a strategic pivot away from core gamers toward casual audiences.

A New Organizational Structure

Previously, Amazon's gaming operations operated in three separate groups that did not collaborate. Gattis described the new structure as similar to Xbox's platform/studios split, emphasizing it is not a retreat but a reorganization for better efficiency.

"The market for core gamers is well-served," Gattis stated. "We see opportunity in casual audiences."

Luna Relaunch and Pricing

Amazon's cloud gaming service Luna has been relaunched with a focus on party games playable via phone as a controller. A notable addition is an AI-powered game starring Snoop Dogg.

  • Free Tier: Available with Amazon Prime
  • Premium Tier: $9.99/month, offering more titles

Game Studios Pipeline

Amazon Game Studios currently has 10-15 titles in development, with 33-40% classified as AAA. Upcoming major releases include:

  • Tomb Raider: Legacy of Atlantis (2027)
  • Tomb Raider: Catalyst (2027)

Amazon also holds the rights to James Bond and plans to publish future Bond games, though a developer has yet to be selected.

"Bond is a prime example of cross-platform IP exploitation—spanning Prime Video, games, and merchandise," Gattis noted.

TV and Gaming Convergence

The company sees increasing convergence between television and video games. Amazon is planning companion games for sports leagues like the NBA and NFL, further bridging the gap between entertainment mediums.

Generative AI as a Development Tool

Amazon is using generative AI to accelerate game development. No staff cuts have been attributed to AI adoption, and the technology is positioned as a tool to enhance, not replace, human creativity.