• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechVideo Games

Amazon’s Coming After Game Companies

By
Chris Morris
Chris Morris
Former Contributing Writer
Down Arrow Button Icon
By
Chris Morris
Chris Morris
Former Contributing Writer
Down Arrow Button Icon
February 9, 2016, 11:37 AM ET
POLAND-LIFESTYLE-GAMES-IT
TO GO WITH AFP STORY BY BERNARD OSSER: Workers of "11 bit Studios" Polish IT company producing video games are seen working in office in Warsaw on July 2, 2015. The Warsaw-based "11 bit" studios has the hallmarks of an IT start-up. Around 40 video game developers sit in the open-plan office located in a 1970s building by a noisy expressway in an industrial part of town. AFP PHOTO/WOJTEK RADWANSKI (Photo credit should read WOJTEK RADWANSKI/AFP/Getty Images)Photograph by Vojtek Radwanski — AFP/Getty Images

Amazon, which has been nosing around the video game world for the past several years, is making its boldest play yet to establish a foothold.

The company has released a new, high-end game engine called Lumberyard that will allow developers to create games for PC, Xbox One, and PlayStation 4. And, in a twist on the industry’s standard practices, Amazon (AMZN) will not charge game makers any sort of royalty or subscription fee.

Instead, the company will monetize the engine through the use of its Amazon Web Services (AWS) cloud computing arm. The engine also integrates Twitch, the game stream service Amazon bought in 2014 for $970 million.

In the coming months, the engine will also support mobile games and virtual reality titles on devices from Oculus.

“When we’ve talked to game developers, they’ve asked for a game engine with the power and capability of leading commercial engines, but that’s significantly less expensive,” said Mike Frazzini, vice president of Amazon Games in a statement.

The company also introduced a separate service for operating and scaling broad multiplayer games, an extremely popular (and profitable) part of most of today’s AAA games.

For more, watch:

Amazon has steadily been building a presence in the gaming world for the better part of the past two years. Prior to its surprise purchase of Twitch, it had already begun laying the groundwork for a bigger push in the industry, launching its own in-house game development studio.

At the same time, it acquired Double Helix games, makers of Killer Instinct on the Xbox One and the classic title Earthworm Jim, and recruited top-level talent from around the industry, including Kim Swift, designer of Valve Software’s Portal and Far Cry 2 lead Clint Hocking. (Hocking left the company last August to rejoin Ubisoft.)

While there have been whispers that it planned to use its own Fire TV or Fire Tablet line to challenge consoles and mobile devices, Amazon has increasingly been taking a flanking approach as it establishes a foothold the industry. Twitch, for instance, has become the world’s leading social video platform for gamers, with over 100 million unique visitors per month and an average view time of 106 minutes per person per day.

And by luring game developers with a free, high-end graphics engine, it can drive more traffic to AWS, which will only increase that division’s bottom line.

Sign up for Data Sheet, Fortune‘s technology newsletter.

With Lumberyard, Amazon is giving developers—both large and independent—the ability to create games with strong community elements, including news feeds, leaderboards and in-game messaging.

By offering those features freely up front and charging game makers on the number of active daily users their game has, it could win over independent developers. That’s increasingly important, as titles from those studios have been growing in popularity with players who are looking for a break from the big-budget sequels that tend to dominate the sales charts.

About the Author
By Chris MorrisFormer Contributing Writer

Chris Morris is a former contributing writer at Fortune, covering everything from general business news to the video game and theme park industries.

See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

CryptoRobinhood
Robinhood launches test version of its own blockchain
By Jeff John RobertsFebruary 10, 2026
4 hours ago
CryptoBlockchain
Citadel and Cathie Wood back Zero, a new blockchain designed for traditional finance
By Leo SchwartzFebruary 10, 2026
8 hours ago
C-SuiteNext to Lead
Why GM’s supply-chain chief sees suppressed dissent as a business risk
By Ruth UmohFebruary 10, 2026
9 hours ago
OpenAI Sam Altman looking into the distance.
AIOpenAI
OpenAI disputes watchdog’s claim it violated California’s new AI safety law with latest model release
By Beatrice NolanFebruary 10, 2026
10 hours ago
Salesforce founder and CEO Marc Benioff on stage, scowling.
AIEye on AI
AI agents from Anthropic and OpenAI aren’t killing SaaS—but incumbent software players can’t sleep easy
By Jeremy KahnFebruary 10, 2026
11 hours ago
A woman sits in front of her laptop, holding her hand to her head
AIthe future of work
In the workforce, AI is having the opposite effect it was supposed to, UC Berkeley researchers warn
By Marco Quiroz-GutierrezFebruary 10, 2026
11 hours ago

Most Popular

placeholder alt text
Economy
America borrowed $43.5 billion a week in the first four months of the fiscal year, with debt interest on track to be over $1 trillion for 2026
By Eleanor PringleFebruary 10, 2026
18 hours ago
placeholder alt text
C-Suite
Meet Jody Allen, the billionaire owner of the Seattle Seahawks, who plans to sell the team and donate the proceeds to charity
By Jake AngeloFebruary 9, 2026
1 day ago
placeholder alt text
AI
As billionaires bail, Mark Zuckerberg doubles down on California with $50 million donation
By Sydney LakeFebruary 9, 2026
2 days ago
placeholder alt text
Economy
China might be beginning to back away from U.S. debt as investors get nervous about overexposure to American assets
By Eleanor PringleFebruary 9, 2026
2 days ago
placeholder alt text
Economy
It turns out that Joe Biden really did crush Americans' dreams for the future. Just look at how the vibe changed 5 years ago
By Jake AngeloFebruary 10, 2026
9 hours ago
placeholder alt text
Success
Super Bowl champion Sam Darnold says his plumber dad played with him every day after work, no matter how tough his day was—and that taught him resilience
By Emma BurleighFebruary 9, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.