AMAZON CUTS AAA GAME DEVELOPMENT BUT CONFIRMS NEW TOMB RAIDER TITLE

[ 28 October 2025 ]

Amazon has announced sweeping changes to its gaming division as part of broader company-wide layoffs affecting around 14,000 corporate employees. As first reported by Variety, the restructuring will see significant reductions within Amazon Game Studios, particularly in its Irvine and San Diego branches, alongside its central publishing team. The company's head of audio, Twitch, and games, Steve Boom, confirmed that the move represents not only a reaction to the wider corporate cuts but also a major strategic pivot in Amazon's approach to the gaming sector.

Despite halting a large portion of its first-party AAA development -- particularly in the massively multiplayer online (MMO) genre -- Amazon remains committed to select high-profile external collaborations, reports Variety. Notably, the company continues to partner with Crystal Dynamics on the next instalment of the Tomb Raider franchise. This new title, set to be published under Amazon's banner, signifies the firm's ongoing investment in established intellectual properties with strong console appeal.

Crystal Dynamics, an Embracer Group company, is currently developing the next Tomb Raider title powered by Unreal Engine 5, with Amazon Games providing global publishing support. The untitled game will be a single-player, narrative-driven adventure, continuing the story of Lara Croft.

Tomb Raider on Unreal Engine 5