As part of its ongoing restructuring efforts, Amazon (NASDAQ:AMZN) is laying off about 100 employees from its Prime Games, Game Growth, and San Diego studio gaming divisions.
On the other hand, the company said it will continue funding internal growth initiatives with a stronger emphasis on content. As a result, the New World team in Irvine and the Montreal studio will continue to expand and grow in the near future.
Amazon’s video game development arm, Amazon Game Studios, has long struggled to gain traction. Since its founding in 2013, the company has failed to produce a hit. At the moment, Amazon only offers one internally developed game titled New World.
According to SteamCharts, there were about 14,601 players who regularly played the New World game over the past 30 days, down from 19,073 in February 2023. The data suggests that the game is gradually losing popularity.
Is Amazon Stock a Buy, Sell, or Hold?
Overall, AMZN stock has received 36 Buy and one Hold recommendations for a Strong Buy consensus rating. Meanwhile, analysts’ average price target of $136.92 implies an upside potential of 31.7%.
