Amazon has joined the growing list of companies in the gaming industry that are cutting jobs. The internet giant has eliminated 180 positions as part of a restructuring effort. Additionally, Amazon is shutting down its own channel on the game streaming site Twitch due to a lack of popularity. This comes as the gaming industry has already seen around 6,500 job losses in 2023, despite the release of successful games like Zelda, Spider-Man, and Mario.

Amazon Games, which was founded in 2012, initially focused on developing games for mobile devices but has since expanded into larger titles. The company has faced challenges in gaining traction with its games, including New World and Lost Ark. In an email to staff, Amazon Games vice president Christoph Hartmann explained that the job cuts were necessary to focus resources on areas with the highest potential for growth. However, he also mentioned that the company is actively recruiting for other positions in its gaming division.

The job losses in the gaming industry can be attributed to the hiring spree that occurred at the start of the pandemic in 2020. As people turned to video games for entertainment and connection during lockdowns, game sales surged. This led to the expansion of game studios and the acquisition of companies by major players like Microsoft, Sony, and Amazon. However, as lockdowns ended and inflation rose, game sales started to decline, resulting in companies needing to control costs.

Despite the job cuts, 2023 has been a banner year for gamers, with a wide range of highly rated games available. Titles like Baldur’s Gate 3, Zelda: Tears of the Kingdom, and Spider-Man 2 have received acclaim, and new entries in the Super Mario and Sonic the Hedgehog franchises have also been well-received. However, industry insiders understand that the job cuts are a result of companies spending more money than they are generating from sales. The need to reduce costs is a necessary step for these companies to maintain financial stability.

In conclusion, Amazon’s decision to cut jobs in its gaming division is part of a larger trend in the industry. Despite the success of many games released in 2023, companies are facing the challenge of controlling costs after a period of rapid expansion. The job cuts reflect the need for these companies to align their resources with areas that have the highest potential for growth.

Original news source: Amazon latest firm to cut jobs in gaming industry (BBC)

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Group or Classroom Activities

Warm-up Activities:

– News Reporter Role-play
Instructions: Students pair up with one assuming the role of a news reporter and the other as a gaming industry analyst. The reporter conducts an interview about the recent job cuts in the gaming industry, specifically focusing on Amazon’s recent decisions. Students should incorporate vocabulary and information from the article into their dialogue.

– Opinion Spectrum
Instructions: Write a series of statements related to the gaming industry’s job cuts and growth challenges on the board (e.g., “The rapid expansion of gaming companies was unsustainable,” “Job cuts are necessary for long-term growth,” etc.). Students physically place themselves along a line in the classroom that represents their level of agreement or disagreement with each statement. Afterwards, engage in a class discussion where students defend their positions.

– Future Predictions
Instructions: Ask students to write a short prediction about the future of the gaming industry based on trends mentioned in the article, such as job cuts, game sales, and industry growth. They should use future tenses and relevant vocabulary. Share and discuss the predictions as a class, encouraging constructive feedback and additional insights.

– Vocabulary Pictionary
Instructions: Write down key terms from the article (e.g., restructuring, streaming site, traction, acquisitions, financial stability) on slips of paper. Students take turns drawing the word on the board without speaking or writing letters or numbers, while the rest of the class guesses the vocabulary. This activity reinforces the understanding of the article’s content and the vocabulary within.

– Speed Summarizing
Instructions: Challenge students to write a summary of the article in a limited amount of time (e.g., 3 minutes). They must include the main points and use key vocabulary from the text. After time is up, students read their summaries aloud, and the class can discuss any missing details or interesting insights that were included.

Comprehension Questions:

1. How many positions has Amazon eliminated as part of its restructuring effort in the gaming industry?
2. Why is Amazon shutting down its own channel on Twitch?
3. How many job losses has the gaming industry experienced in 2023?
4. When was Amazon Games founded and what was its initial focus?
5. What challenges has Amazon Games faced with its game titles?
6. Why did the gaming industry experience a hiring spree at the start of the pandemic in 2020?
7. What are some of the highly rated games that have been released in 2023?
8. What is the underlying reason for the job cuts in the gaming industry according to industry insiders?
Go to answers ⇩

Listen and Fill in the Gaps:

Amazon has joined the growing list of companies in the gaming (1)______ that are cutting jobs. The internet giant has eliminated 180 positions as part of a (2)______ effort. Additionally, Amazon is shutting down its own channel on the game streaming site Twitch due to a lack of popularity. This comes as the gaming industry has already seen around 6,500 job losses in 2023, despite the release of successful (3)______ like Zelda, Spider-Man, and Mario.

Amazon Games, which was founded in 2012, initially focused on developing games for mobile devices but has since (4)______ into larger titles. The company has (5)______ challenges in gaining (6)______ with its games, including New World and Lost Ark. In an email to staff, Amazon Games vice president Christoph Hartmann explained that the job cuts were necessary to focus resources on areas with the highest potential for growth. However, he also mentioned that the company is actively recruiting for other positions in its gaming division.

The job losses in the gaming industry can be attributed to the hiring spree that occurred at the start of the pandemic in 2020. As people turned to video games for entertainment and (7)______ during (8)______, game sales (9)______. This led to the expansion of game studios and the acquisition of companies by major players like Microsoft, Sony, and Amazon. However, as lockdowns ended and (10)______ rose, game sales started to decline, resulting in companies (11)______ to control costs.

Despite the job cuts, 2023 has been a banner year for gamers, with a wide range of highly rated games available. Titles like Baldur’s Gate 3, Zelda: Tears of the Kingdom, and Spider-Man 2 have received acclaim, and new entries in the (12)______ Mario and Sonic the Hedgehog franchises have also been well-received. However, industry insiders understand that the job cuts are a result of companies spending more money than they are generating from sales. The need to reduce costs is a necessary step for these companies to (13)______ financial stability.

In conclusion, Amazon’s decision to cut jobs in its (14)______ division is part of a larger trend in the industry. Despite the (15)______ of many games released in 2023, companies are facing the challenge of controlling costs after a period of rapid expansion. The job cuts reflect the need for these companies to align their resources with areas that have the highest potential for (16)______.
Go to answers ⇩

Discussion Questions:

Students can ask a partner these questions, or discuss them as a group.

1. What do you think is the biggest challenge for large companies like Amazon when entering the gaming industry?
2. How would you feel if your favorite gaming platform suddenly shut down a channel or service you frequently use?
3. What is your opinion on the necessity of job cuts in large companies to focus on growth in specific areas?
4. Do you think it’s fair for companies to hire aggressively during a boom and then cut jobs when the economy slows down? Why or why not?
5. How do you believe the gaming industry could better prepare for economic downturns to avoid such significant job losses?
6. What is your experience with any of the games mentioned in the article, such as Zelda or Spider-Man? Do you think they deserve the acclaim they’ve received?
7. How would you feel if you were working in a job that was considered at risk due to restructuring or cost-cutting measures?
8. Do you think that the surge in video game sales during the pandemic will have a long-term impact on the industry, or is it just a temporary spike?
9. In your opinion, what is the “highest potential for growth” within the gaming industry right now?
10. How do you like to connect with others through video games, and how has this changed since the end of lockdowns?
11. Do you think that job cuts are an effective way for companies to maintain financial stability? Why or why not?
12. What is your perspective on the role of game streaming sites like Twitch in the gaming industry?
13. Have you ever been affected by job cuts or restructuring within your industry? How did you cope with the situation?
14. Do you think the gaming industry should focus more on innovation or on financial stability during uncertain economic times?
15. How do you think the balance between physical game sales and digital downloads is affecting the financial health of the gaming industry?

Individual Activities

Vocabulary Meanings:

Match each word to its meaning.

Words:
1. Amazon
2. jobs
3. gaming
4. industry
5. cuts
6. companies
7. games
8. sales

Meanings:
(a) The overall business sector of gaming
(b) Interactive entertainment products
(c) The revenue generated from game purchases
(d) Reductions in workforce
(e) Positions that have been eliminated
(f) Organizations in the gaming sector
(g) The sector that Amazon is a part of
(h) The internet giant that cut 180 positions
Go to answers ⇩

Multiple Choice Questions:

1. How many positions did Amazon eliminate in its gaming division?
(a) 6500
(b) 180
(c) 2023
(d) 2012

2. Why is Amazon shutting down its channel on Twitch?
(a) Financial instability
(b) Lack of popularity
(c) Competition from other streaming sites
(d) Technical difficulties

3. When was Amazon Games founded?
(a) 2012
(b) 2023
(c) 2020
(d) 2010

4. Which games did the article mention as successful releases in 2023?
(a) Baldur’s Gate 3, Zelda, and Spider-Man
(b) Zelda, Sonic the Hedgehog, and Mario
(c) Zelda, Spider-Man, and Mario
(d) Baldur’s Gate 3, Zelda, and Mario

5. Why are companies in the gaming industry cutting jobs?
(a) To control costs
(b) Lack of popular games
(c) Competition from other industries
(d) Lack of skilled workers

6. What led to the hiring spree in the gaming industry in 2020?
(a) Expansion of game studios
(b) Acquisition of companies by major players
(c) All of the above
(d) Increased game sales during lockdowns

7. What is the main reason for the job cuts in the gaming industry?
(a) Lack of demand for video games
(b) Inflation and rising costs
(c) Lack of financial stability
(d) Companies spending more money than they are generating from sales

8. What is the purpose of Amazon’s job cuts in its gaming division?
(a) To reduce competition in the industry
(b) To shift focus to mobile game development
(c) To focus resources on areas with high growth potential
(d) To align resources with successful game releases

Go to answers ⇩

True or False Questions:

1. The job cuts in the gaming industry cannot be attributed to the hiring spree that occurred at the start of the pandemic in 2020.
2. Amazon Games initially focused on developing games for mobile devices and has not expanded into larger titles.
3. The job cuts in the gaming industry reflect the need for companies to align their resources with areas that have the highest potential for growth.
4. Amazon Games has not faced challenges in gaining traction with its games, including New World and Lost Ark.
5. The gaming industry has not seen around 6,500 job losses in 2023.
6. Game sales surged during lockdowns but started to decline as lockdowns ended and inflation rose.
7. Amazon is shutting down its channel on the game streaming site Twitch due to a lack of popularity.
8. Amazon has cut 180 positions in its gaming division as part of a restructuring effort.
Go to answers ⇩

Write a Summary:

Write a summary of this news article in two sentences.

Writing Questions:

Answer the following questions. Write as much as you can for each answer.

1. How many positions has Amazon eliminated in its gaming division as part of its restructuring efforts?
2. Why is Amazon shutting down its own channel on Twitch, and what does this indicate about the channel’s performance?
3. What challenges has Amazon Games faced since its expansion from mobile games to larger titles?
4. What reasons did Christoph Hartmann, the vice president of Amazon Games, provide for the recent job cuts?
5. Despite the job losses, what indicates that 2023 has been a successful year for gamers in terms of game releases?

Answers

Comprehension Question Answers:

1. How many positions has Amazon eliminated as part of its restructuring effort in the gaming industry?
Amazon has eliminated 180 positions as part of its restructuring effort.

2. Why is Amazon shutting down its own channel on Twitch?
Amazon is shutting down its own channel on Twitch due to a lack of popularity.

3. How many job losses has the gaming industry experienced in 2023?
The gaming industry has experienced around 6,500 job losses in 2023.

4. When was Amazon Games founded and what was its initial focus?
Amazon Games was founded in 2012, and its initial focus was on developing games for mobile devices.

5. What challenges has Amazon Games faced with its game titles?
Amazon Games has faced challenges in gaining traction with its games, including New World and Lost Ark.

6. Why did the gaming industry experience a hiring spree at the start of the pandemic in 2020?
The gaming industry experienced a hiring spree at the start of the pandemic in 2020 because people turned to video games for entertainment and connection during lockdowns, leading to a surge in game sales and the expansion of game studios.

7. What are some of the highly rated games that have been released in 2023?
Some of the highly rated games released in 2023 include Baldur’s Gate 3, Zelda: Tears of the Kingdom, and Spider-Man 2, along with new entries in the Super Mario and Sonic the Hedgehog franchises.

8. What is the underlying reason for the job cuts in the gaming industry according to industry insiders?
The underlying reason for the job cuts in the gaming industry, according to industry insiders, is that companies are spending more money than they are generating from sales, leading to the need to reduce costs to maintain financial stability.
Go back to questions ⇧

Listen and Fill in the Gaps Answers:

(1) industry
(2) restructuring
(3) games
(4) expanded
(5) faced
(6) traction
(7) connection
(8) lockdowns
(9) surged
(10) inflation
(11) needing
(12) Super
(13) maintain
(14) gaming
(15) success
(16) growth
Go back to questions ⇧

Vocabulary Meanings Answers:

1. Amazon
Answer: (h) The internet giant that cut 180 positions

2. jobs
Answer: (e) Positions that have been eliminated

3. gaming
Answer: (g) The sector that Amazon is a part of

4. industry
Answer: (a) The overall business sector of gaming

5. cuts
Answer: (d) Reductions in workforce

6. companies
Answer: (f) Organizations in the gaming sector

7. games
Answer: (b) Interactive entertainment products

8. sales
Answer: (c) The revenue generated from game purchases
Go back to questions ⇧

Multiple Choice Answers:

1. How many positions did Amazon eliminate in its gaming division?
Answer: (b) 180

2. Why is Amazon shutting down its channel on Twitch?
Answer: (b) Lack of popularity

3. When was Amazon Games founded?
Answer: (a) 2012

4. Which games did the article mention as successful releases in 2023?
Answer: (c) Zelda, Spider-Man, and Mario

5. Why are companies in the gaming industry cutting jobs?
Answer: (a) To control costs

6. What led to the hiring spree in the gaming industry in 2020?
Answer: (d) Increased game sales during lockdowns

7. What is the main reason for the job cuts in the gaming industry?
Answer: (d) Companies spending more money than they are generating from sales

8. What is the purpose of Amazon’s job cuts in its gaming division?
Answer: (c) To focus resources on areas with high growth potential
Go back to questions ⇧

True or False Answers:

1. The job cuts in the gaming industry cannot be attributed to the hiring spree that occurred at the start of the pandemic in 2020. (Answer: False)
2. Amazon Games initially focused on developing games for mobile devices and has not expanded into larger titles. (Answer: False)
3. The job cuts in the gaming industry reflect the need for companies to align their resources with areas that have the highest potential for growth. (Answer: True)
4. Amazon Games has not faced challenges in gaining traction with its games, including New World and Lost Ark. (Answer: False)
5. The gaming industry has not seen around 6,500 job losses in 2023. (Answer: False)
6. Game sales surged during lockdowns but started to decline as lockdowns ended and inflation rose. (Answer: True)
7. Amazon is shutting down its channel on the game streaming site Twitch due to a lack of popularity. (Answer: True)
8. Amazon has cut 180 positions in its gaming division as part of a restructuring effort. (Answer: True)
Go back to questions ⇧