Update: Amazon's new CEO, Andy Jassy, has commented on the Bloomberg report.
“Some businesses take off in the first year, and others take many years,” he said (via Bloomberg).
“Though we haven’t consistently succeeded yet in AGS [Amazon Game Studios], I believe we will if we hang in there.”
"Being successful right away is obviously less stressful, but when it takes longer, it’s often sweeter,” Jassy said
“I believe this team will get there if we stay focused on what matters most.”
According to a new report, Amazon is spending around half a billion dollars per year on its gaming division, despite failing to generate interest in its gaming properties released to this point.
Bloomberg reports that, excluding Twitch and Amazon Luna (the company's game streaming service), Amazon spends almost "$500 million a year" on its gaming arm.
Read more: Microsoft, Amazon and Google Looking To Acquire More Game Studios – Report
Amazon Spends Half A Billion Dollars A Year On Gaming
The company has cancelled some projects that were in active development, while the ones it has released haven't fared well.
Crucible, Amazon's first foray into developing an online shooter, launched last year before being shut down due to a lack of players.
The company is working on a pair of MMOs, at present, with New World being delayed until this year.
Its other MMO, based on The Lord of the Rings franchise, is set to run alongside the company's video series based on the source material from J.R.R. Tolkien.
Bloomberg's report discusses how Amazon's proprietary engine, Lumberyard, is less than ideal to work with, as well as the inexperience of key members of the gaming division's hierarchy.
Mike Frazzini, the head of the section, doesn't always listen to the experienced staff that have been bought on board, while there are also allegations of a toxic "bro culture" within the gaming staff.
Amazon has yet to comment on the report.
Recent reports suggested that Amazon is looking to acquire game studios, alongside Microsoft and Google.
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