September 30, 2016, marked a pivotal moment for Amazon Game Studios at TwitchCon, where the company introduced its ambitious titles: Breakaway, Crucible, and New World. This unveiling signaled a significant foray into high-stakes game development. Fast forward nearly a decade, and we find ourselves reflecting on the aftermath of these aspirations, pondering a singular, poignant question: What the hell went wrong?
The trajectory of Amazon’s gaming ambitions has been anything but smooth. The first sign of trouble emerged in 2018 when the development of Breakaway was abruptly halted following lackluster previews and an open alpha that failed to generate excitement. Crucible, on the other hand, continued its development despite early warning signs, only to be ‘un-released’ a mere month after its launch, ultimately leading to its cancellation. While Amazon has committed to keeping New World operational until at least the end of 2026, it has ceased active development, a decision accompanied by significant layoffs within Amazon Games.
Unpacking the Failures
Identifying a singular cause for the unraveling of Amazon’s gaming endeavors is challenging, as a multitude of factors contributed to this outcome. The decline of New World, alongside the apparent retreat from Amazon’s broader gaming ambitions, resonates with insights shared by former Prime Gaming vice president Ethan Evans earlier this year. He suggested that a blend of hubris and financial might can lead to perilous miscalculations.
Amazon’s overarching ambition, as outlined in a LinkedIn post from February, was to “disrupt the game platform Steam.” With a user base reportedly 250 times larger than Steam’s, one might assume this goal was within reach. However, Evans candidly acknowledged the challenges faced, stating, “The 15+ year long attempt to challenge Steam started before I was VP of Prime Gaming, but we never cracked the code.” This sentiment underscores the reality that despite Amazon’s size, it struggled to gain traction in a market dominated by established players.
Efforts to penetrate the digital marketplace included attempts at acquisition, the integration of a storefront within Twitch, and the launch of the cloud gaming service Luna, all of which fell short of expectations. Meanwhile, Steam, under the steady leadership of Gabe Newell, continued to thrive, reinforcing its stronghold in the PC gaming sector.
Reflecting on these challenges, Evans remarked on Amazon’s miscalculation regarding user habits. “At Amazon, we assumed that size and visibility would be enough to attract customers, but we underestimated the power of existing user habits,” he noted. The failure to validate core assumptions before making substantial investments became evident, as gamers remained loyal to their established platforms, resistant to switching for a new contender that failed to offer a compelling alternative.
The extent of Amazon’s struggle to compete with Steam is illustrated by the fact that many gamers were unaware of Amazon’s efforts to enter the gaming market. This lack of awareness is a telling indicator of the uphill battle faced by the tech giant.
While Amazon is not entirely abandoning its gaming pursuits, it is shifting its focus away from large-scale productions like New World. Instead, the company is exploring more unconventional projects, such as an AI-powered game featuring Snoop Dogg as a judge, suggesting a pivot toward more innovative and perhaps less traditional gaming experiences.