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Amazon exits AAA race, targets 2.5B non-console gamers via Luna-Prime Video merger

Summary
Amazon consolidated Luna, Amazon Game Studios, and Prime Gaming under Jeff Gattis, ex-Xbox platforms GM hired March 2025
Luna is now embedded in Prime Video on Fire TV in US and UK, killing the separate app and subscription
Target shifts from the 500M console/PC base to the 2.5B who play games but own no dedicated hardware
"The world doesn't need another high-end gaming platform. They're all fighting each other for the same set of customers"
— Jeff Gattis, GM Amazon Luna and Amazon Game Studios
01

Three siloed units collapsed into one gaming P&L

Pre-2025, Amazon Game Studios, Luna, and Prime Gaming operated autonomously with zero coordination
"None of these businesses were communicating with each other. Really, we were all operating autonomously"
— Jeff Gattis, GM Amazon Luna and Amazon Game Studios
New structure: Luna as platform, Amazon Game Studios as development arm, both reporting to Gattis
Prime Gaming's month-long giveaway model is being replaced with longer-term Luna licensing deals
02

Amazon gaming consolidation abandons the console red ocean

Of ~3B global players, only ~500M own consoles or PCs; the remaining 2.5B mobile-first audience is Amazon's declared target
Content filter: high-recognition IP with approachable mechanics - Hogwarts Legacy cited as performing "incredibly well" on Luna
GameNight phone-as-controller format drove 5x active user growth after October relaunch, from a small base
Emerging markets framed as structural edge: Prime membership absorbs access cost where hardware economics break incumbents
03

Prime Video integration converts gaming into an IP bundling layer

Luna sits in a 'Games' tab inside Prime Video on Fire TV, removing the separate subscription barrier
Tomb Raider is the lead transmedia proof point: TV series plus two games (Legacy of Atlantis, Catalyst) in the pipeline
Masters of the Universe: Legends Unite launched on Luna alongside the theatrical release - first execution of content stacking
"Imagine going into Prime Video and seeing a page that is much more about fandom and IP, as opposed to 'here's a bunch of shows'"
— Jeff Gattis, GM Amazon Luna and Amazon Game Studios
MGM IP, Prime Video, Twitch, and AWS are the four assets Gattis is now actively wiring into Luna
04

Portfolio pruning and Bond restraint signal disciplined content strategy

Amazon dropped Maverick Games' driving title Clutch after portfolio review, citing no "real fit in the market"
Gattis deferred any 007: First Light sequel to IO Interactive despite Amazon owning the Bond rights
"We're going to do what's right by the game, we're not trying to bring everything into Amazon"
— Jeff Gattis, GM Amazon Luna and Amazon Game Studios
On acquiring IO Interactive: "anything's possible" but no active conversations
Amazon has more games in development than at any point in its history, spanning AAA to GameNight formats
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