Amazon has recently laid off 180 people in its gaming division as part of a plan to reorganize the company. They have also decided to shut down their channel on Twitch, a popular game streaming site, because not enough people were using it. This is happening at a time when the gaming industry as a whole has seen around 6,500 job losses this year, even though games like Zelda, Spider-Man, and Mario have been really successful.

Amazon Games, which started in 2012, used to focus on making games for phones and tablets, but now they’re making bigger games too. However, they’ve had a hard time getting people interested in their games like New World and Lost Ark. The company’s vice president, Christoph Hartmann, said in an email that they had to cut jobs so they could focus on the parts of the company that have the most potential for growth. But he also said that they’re still hiring for other positions in the gaming division.

The reason why there have been so many job losses in the gaming industry is because during the pandemic, lots of people started playing video games to pass the time. This made game sales go up, so companies started hiring more people and buying other companies. But now that the pandemic is ending and prices are going up, game sales are going down. So companies need to spend less money to stay stable.

Even though there have been job cuts, this year has been really good for gamers. There have been a lot of great games like Baldur’s Gate 3, Zelda: Tears of the Kingdom, and Spider-Man 2. People have also liked the new Super Mario and Sonic the Hedgehog games. But people who know about the industry understand that the job cuts are happening because companies are spending more money than they’re making from game sales. They need to cut costs to stay financially stable.

In summary, Amazon is cutting jobs in its gaming division because they want to focus on the parts of the company that have the most potential for growth. This is part of a bigger trend in the gaming industry, where companies are trying to control costs after a period of fast growth. Even though there have been job losses, there have been a lot of great games released this year. But companies need to make sure they’re making enough money to stay stable.

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 Summary
Instructions: Students work in pairs to summarize the main points of the article in their own words. Each pair should aim to condense the article into five sentences, capturing the essence of the layoffs at Amazon’s gaming division, the reasons behind the job cuts in the gaming industry, and a mention of the successful games released this year. Afterward, each pair shares their summary with the class.

– Opinion Spectrum
Instructions: Create a line in the classroom representing a spectrum from “strongly agree” to “strongly disagree”. Read out statements related to the article, such as “Job cuts are necessary for a company’s growth” or “The gaming industry will recover quickly from these layoffs.” Students should stand at the point on the spectrum that represents their opinion. Then, have students discuss their positions with the person next to them.

– Future Predictions
Instructions: Have the students form small groups. Each group will discuss and make predictions about the future of the gaming industry and Amazon’s gaming division based on the information provided in the article. They should consider questions like: How will the end of the pandemic affect game sales? Will Amazon’s focus on growth lead to success? Each group then shares their predictions with the class.

– Keyword Hangman
Instructions: Play a game of hangman using key vocabulary from the article. Words could include “layoffs,” “reorganize,” “streaming,” “potential,” “growth,” “pandemic,” “sales,” and “financially stable.” This will help reinforce the new vocabulary from the context of the article.

– Pros and Cons
Instructions: Divide the class into two groups. One group will list the pros (positive aspects) and the other group the cons (negative aspects) of the job cuts in the gaming industry as highlighted in the article. They should consider the impact on employees, the company, and the industry as a whole. Afterward, have a representative from each group present their list to the class and open the floor for a brief discussion.

Comprehension Questions:

1. How many people were laid off from Amazon’s gaming division recently?
2. What was the reason for Amazon shutting down their channel on Twitch?
3. How many job losses has the gaming industry experienced this year?
4. What type of games did Amazon Games initially focus on creating?
5. Why is Amazon still hiring for certain positions within their gaming division despite the layoffs?
6. What caused the increase in game sales during the pandemic?
7. Can you name some of the successful games mentioned that were released this year?
8. What is the main reason behind the job cuts in the gaming industry according to the article?
Go to answers ⇩

Listen and Fill in the Gaps:

Amazon has recently laid off 180 people in its gaming division as part of a plan to reorganize the company. They have also decided to shut down their channel on Twitch, a (1)______ game streaming site, because not enough people were using it. This is happening at a time when the gaming industry as a whole has seen around 6,500 job losses this year, even though games like Zelda, Spider-Man, and Mario have been really successful.

Amazon Games, which started in 2012, used to focus on (2)______ games for (3)______ and (4)______, but now they’re making bigger games too. However, they’ve had a hard time getting people interested in their games like New (5)______ and Lost Ark. The company’s vice president, (6)______ Hartmann, said in an email that they had to cut jobs so they could (7)______ on the parts of the company that have the most potential for growth. But he also said that they’re still hiring for other positions in the gaming division.

The reason why there have been so many job (8)______ in the gaming industry is because during the pandemic, lots of people started playing video games to pass the time. This made game sales go up, so companies started hiring more people and buying other (9)______. But now that the pandemic is ending and (10)______ are going up, game sales are going down. So companies need to spend less money to stay stable.

Even though there have been job cuts, this year has been really good for gamers. There have been a lot of great games like Baldur’s Gate 3, Zelda: Tears of the Kingdom, and Spider-Man 2. People have also (11)______ the new Super Mario and Sonic the Hedgehog games. But people who know about the industry (12)______ that the job cuts are happening because companies are spending more money than they’re making from game sales. They need to cut costs to stay financially stable.

In summary, Amazon is cutting jobs in its (13)______ division because they want to focus on the parts of the (14)______ that have the most potential for growth. This is part of a (15)______ trend in the gaming industry, where companies are trying to (16)______ costs after a period of fast growth. Even though there have been job losses, there have been a lot of great games released this year. But companies need to make sure they’re making enough money to stay stable.
Go to answers ⇩

Discussion Questions:

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

1. What is a job layoff and how would you feel if you were affected by one?
2. Have you ever played a game on Twitch? Do you think it’s a good platform for game streaming?
3. Do you think it’s fair for a company to shut down a service if not enough people are using it? Why or why not?
4. What is your favorite video game and why do you think it’s successful?
5. How do you think the success of a video game is measured?
6. If you were in charge of a gaming company, what kind of games would you focus on making?
7. What do you think about companies that have to fire people to save money? Is it always necessary?
8. Have you or someone you know ever lost a job? How did it impact you or them?
9. Why do you think people played more video games during the pandemic?
10. Do you think video game sales will continue to decrease after the pandemic? Why or why not?
11. What is one way a company can cut costs without laying off employees?
12. Have you played any new games released this year? Which one did you like the most?
13. Do you think the quality of video games is improving? Give an example of a good recent game.
14. Why do you think companies might spend more money than they make? Is this a good strategy in the long term?
15. What do you think the future of the gaming industry looks like? Will there be more job cuts or growth?

Individual Activities

Vocabulary Meanings:

Match each word to its meaning.

Words:
1. laid off
2. reorganize
3. shut down
4. gaming division
5. job losses
6. potential for growth
7. financially stable
8. control costs

Meanings:
(a) Fired from a job
(b) Reduction in the number of jobs available
(c) Close or stop operating
(d) The possibility of increasing or expanding
(e) A specific department or section within a company
(f) Having enough money to continue operating
(g) Manage or reduce expenses to maintain stability
(h) Change the structure or organization of something
Go to answers ⇩

Multiple Choice Questions:

1. Why did Amazon lay off 180 people in its gaming division?
(a) Because they were not qualified for the job
(b) To focus on making smaller games
(c) To reorganize the company
(d) Because they were not interested in gaming

2. Why did Amazon decide to shut down its channel on Twitch?
(a) They wanted to focus on phone and tablet games
(b) Not enough people were using it
(c) They were losing money from the channel
(d) They wanted to partner with a different streaming site

3. What kind of games did Amazon Games originally focus on?
(a) Games for phones and tablets
(b) Virtual reality games
(c) Board games
(d) Sports games

4. Why did Amazon Games decide to make bigger games?
(a) To compete with other game companies
(b) Because smaller games were not successful
(c) To attract more players
(d) To save money on development costs

5. Why has the gaming industry seen job losses this year?
(a) Game sales have gone down
(b) The pandemic caused a decrease in game sales
(c) Companies are spending more money than they’re making
(d) All of the above

6. Why are companies in the gaming industry trying to control costs?
(a) To focus on game development
(b) To stay financially stable
(c) To attract more investors
(d) To increase game sales

7. What has been the impact of the pandemic on the gaming industry?
(a) Companies started hiring more people
(b) Prices of games increased
(c) All of the above
(d) Game sales went up

8. What is the main reason Amazon is cutting jobs in its gaming division?
(a) To reduce costs and stay financially stable
(b) To hire new employees in other divisions
(c) Because their games were not successful
(d) To focus on the parts of the company with growth potential

Go to answers ⇩

True or False Questions:

1. They have decided to shut down their channel on Twitch because not enough people were using it.
2. The gaming industry has seen around 6,500 job losses this year.
3. They’ve had an easy time getting people interested in their games like New World and Lost Ark.
4. This year has been bad for gamers with terrible games like Baldur’s Gate 3, Zelda: Tears of the Kingdom, and Spider-Man 2.
5. Amazon has laid off 180 people in its gaming division as part of a plan to reorganize the company.
6. Amazon Games used to focus on making games for computers and consoles, but now they’re making smaller games only.
7. The reason for the job gains in the gaming industry is that game sales are going up after a surge during the pandemic.
8. Companies are cutting jobs to control costs and stay financially stable.
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. Why did Amazon decide to lay off 180 people in its gaming division?
2. What was the reason for shutting down Amazon’s channel on Twitch?
3. What has Christoph Hartmann, the company’s vice president, said about the job cuts at Amazon Games?
4. Can you explain why the gaming industry is facing so many job losses recently?
5. Despite the job cuts, why has this year been good for gamers?

Answers

Comprehension Question Answers:

1. How many people were laid off from Amazon’s gaming division recently?
Amazon recently laid off 180 people from its gaming division.

2. What was the reason for Amazon shutting down their channel on Twitch?
Amazon shut down their channel on Twitch because not enough people were using it.

3. How many job losses has the gaming industry experienced this year?
The gaming industry has seen around 6,500 job losses this year.

4. What type of games did Amazon Games initially focus on creating?
Amazon Games initially focused on creating games for phones and tablets.

5. Why is Amazon still hiring for certain positions within their gaming division despite the layoffs?
Amazon is still hiring for certain positions within their gaming division to focus on the parts of the company that have the most potential for growth.

6. What caused the increase in game sales during the pandemic?
During the pandemic, more people started playing video games to pass the time, which caused game sales to go up.

7. Can you name some of the successful games mentioned that were released this year?
Some successful games released this year include Baldur’s Gate 3, Zelda: Tears of the Kingdom, Spider-Man 2, and the new Super Mario and Sonic the Hedgehog games.

8. What is the main reason behind the job cuts in the gaming industry according to the article?
The main reason behind the job cuts in the gaming industry is that companies are spending more money than they’re making from game sales and need to cut costs to stay financially stable.
Go back to questions ⇧

Listen and Fill in the Gaps Answers:

(1) popular
(2) making
(3) phones
(4) tablets
(5) World
(6) Christoph
(7) focus
(8) losses
(9) companies
(10) prices
(11) liked
(12) understand
(13) gaming
(14) company
(15) bigger
(16) control
Go back to questions ⇧

Vocabulary Meanings Answers:

1. laid off
Answer: (a) Fired from a job

2. reorganize
Answer: (h) Change the structure or organization of something

3. shut down
Answer: (c) Close or stop operating

4. gaming division
Answer: (e) A specific department or section within a company

5. job losses
Answer: (b) Reduction in the number of jobs available

6. potential for growth
Answer: (d) The possibility of increasing or expanding

7. financially stable
Answer: (f) Having enough money to continue operating

8. control costs
Answer: (g) Manage or reduce expenses to maintain stability
Go back to questions ⇧

Multiple Choice Answers:

1. Why did Amazon lay off 180 people in its gaming division?
Answer: (c) To reorganize the company

2. Why did Amazon decide to shut down its channel on Twitch?
Answer: (b) Not enough people were using it

3. What kind of games did Amazon Games originally focus on?
Answer: (a) Games for phones and tablets

4. Why did Amazon Games decide to make bigger games?
Answer: (c) To attract more players

5. Why has the gaming industry seen job losses this year?
Answer: (a) Game sales have gone down

6. Why are companies in the gaming industry trying to control costs?
Answer: (b) To stay financially stable

7. What has been the impact of the pandemic on the gaming industry?
Answer: (d) Game sales went up

8. What is the main reason Amazon is cutting jobs in its gaming division?
Answer: (d) To focus on the parts of the company with growth potential
Go back to questions ⇧

True or False Answers:

1. They have decided to shut down their channel on Twitch because not enough people were using it. (Answer: True)
2. The gaming industry has seen around 6,500 job losses this year. (Answer: True)
3. They’ve had an easy time getting people interested in their games like New World and Lost Ark. (Answer: False)
4. This year has been bad for gamers with terrible games like Baldur’s Gate 3, Zelda: Tears of the Kingdom, and Spider-Man 2. (Answer: False)
5. Amazon has laid off 180 people in its gaming division as part of a plan to reorganize the company. (Answer: True)
6. Amazon Games used to focus on making games for computers and consoles, but now they’re making smaller games only. (Answer: False)
7. The reason for the job gains in the gaming industry is that game sales are going up after a surge during the pandemic. (Answer: False)
8. Companies are cutting jobs to control costs and stay financially stable. (Answer: True)
Go back to questions ⇧