Amazon Games announced in October 2025 that it will cease all development for New World, its flagship MMORPG launched September 28, 2021. Season 10 and Nighthaven represent the final content updates. Servers remain operational through 2026, providing six months’ notice before closure. This shutdown reflects Amazon’s broader corporate restructuring that eliminated 14,000 corporate employees in October 2025, with plans for additional cuts of approximately 16,000 through 2026.[1][2][3]
Why Amazon Shut Down New World Before Peak Performance
Amazon’s restructuring affected San Diego and Irvine studios, with Irvine severely impacted as New World’s development hub. CEO Andy Jassy clarified the decision: “The announcement was not financially driven, and it’s not even really AI-driven, not right now at least. It really—it’s culture.” Senior Vice President Beth Galetti stated the goal was organizing “more leanly, with fewer layers and more ownership.”[4][5][6]
Key organizational drivers included reducing hierarchy, redirecting resources to lower-margin projects, and establishing accountability culture. Amazon also halted “a significant amount of our first-party AAA game development,” including the Lord of the Rings MMO, confirmed by a former senior gameplay engineer.[7][8]
Why New World Failed to Retain Its Player Base
New World peaked at 913,000 concurrent players on Steam at launch but experienced severe decline. The game lost 92 percent of Player Base Decline over 48 months, indicating design failures rather than typical MMORPG lifecycle attrition.[9][10]
| Period | Player Count | Months Since Launch |
|---|---|---|
| September 2021 | 913,000 | 0 |
| November 2021 | 304,000 | 2 |
| November 2022 | 137,000 | 14 |
| October 2023 | 77,000 | 24 |
| October 2024 | 56,000 | 36 |
| October 2025 | ~25,000 | 48 |
Players cited shallow narrative, repetitive gathering, poor character customization, inadequate endgame content, and weak PvE-PvP balance as reasons for departure. The 2024 console release and Rise of the Angry Earth expansion provided temporary engagement boosts but failed to reverse decline.[11][12]
How Story-Driven Games Prove Lasting Market Viability
Despite Amazon’s pivot, narrative-focused games demonstrate sustained commercial success:
- Baldur’s Gate 3 achieved 15 million copies sold with strong community engagement.[13]
- Cyberpunk 2077 recovered from its troubled 2020 launch to reach 30 million units sold.[14]
- Elden Ring sold 30 million copies, confirming demand for narrative-mechanical depth.[15]
These titles prove emotional investment drives retention, supports higher price points, and generates word-of-mouth marketing superior to monetization-focused design.[16]
Industry Implications of Amazon’s Strategic Shift
Amazon’s decision signals a trend among tech-backed studios prioritizing cost-efficient automation over narrative investment. If sustained, this creates opportunity for independent and international developers emphasizing player-first design. European studios including Larian Studios, CD Projekt Red, and Guerrilla Games have already established competitive advantages through narrative commitment.[17][18][19]
Additionally, Amazon announced closure of its Game Studios Creator Program effective October 2025, affecting content creators across New World, Lost Ark, Throne and Liberty, and King of Meat. Program data will be deleted by November 30, 2025.[20][21]
Financial Context: Amazon’s 2025 capital expenditure projects to USD 125 billion (60 percent year-over-year increase), primarily allocated to AI data centers, contradicting any cost-cutting narrative. This represents strategic labor reallocation rather than financial desperation.[22][23]
