Amazon is reportedly making significant cuts to its video game division, which may impact titles like New World and the Lord of the Rings MMO. The company is planning to scale back its development of big-budget projects, especially in the MMO genre, amidst a larger company-wide job reduction of 14,000 positions. A memo from Amazon's vice president hinted at these layoffs, emphasizing a shift in focus away from major first-party AAA game development. This move follows a series of challenges in Amazon's gaming efforts, including the cancellation of Crucible and lackluster performance of New World post-launch.

The layoffs are set to slow down development on upcoming titles such as the Lord of the Rings MMO and potentially hinder progress on New World and other projects within Amazon Game Studios. With fewer resources available for AAA titles, fans may experience delays or reduced quality in their anticipated games.

Amazon's foray into the gaming industry began with a shaky start as they attempted to make a mark with titles like Crucible, which was withdrawn shortly after release. The company has faced ongoing challenges in maintaining player interest in its MMO, New World, which launched in 2021 with a promising start but has since struggled to keep players engaged. Amazon's other significant project includes an upcoming Tomb Raider game, which was reported to be progressing well, placing the future of more ambitious titles in jeopardy as the company recalibrates its strategy.