Amazon winding down New World may signal the end of Western-developed MMORPGs

Amazon’s announcement that it will wind down support for its flagship title, New World, raises major questions about the future of Western-developed Massively Multiplayer Online Role Playing Games (MMORPGs) and about Amazon’s own role in the gaming industry (via Amazon Game Studios).

While other game projects had reportedly been in progress at Amazon over the years, most were quietly cancelled before ever coming to fruition. Coupled with ongoing layoffs in Amazon’s gaming division, the decision hardly paints an optimistic picture for its internal development efforts. New World represented Amazon’s only significant in-house success in game development.

Still, Amazon’s retreat from gaming may put it in a better position to reflect and capitalise shifting economics in both gaming and streaming. Beyond Amazon, the decision will likely have reverberating effects on the broader MMORPG community and game investment space.

Another competitor in the era of cloud streaming

Amazon’s exit from direct game development doesn’t signal an exit from the gaming business altogether. Instead, the company appears to be refocussing on what it does best: publishing, distribution, and platform services. This pivot is already underway through Amazon Luna, the company’s cloud gaming service, which allows users to access a library of independently developed titles and subscription-based games across multiple devices.

The shift from development to distribution has proven highly profitable for other industry players – Valve’s success with Steam being the prime example. Amazon seems to be following a similar path, leveraging its powerful AWS cloud infrastructure and integrating it with a subscription ecosystem that could tie together Amazon Prime, Luna, and Twitch. This model would position Amazon to compete more effectively for consumer attention in an increasingly fragmented and cost-conscious market.

In terms of partnerships, Amazon also benefits from its robust Western distribution network, giving it an edge as a publishing partner for emerging developers and publishers in Eastern markets. The company’s long-term success in this space, however, will depend on whether it can properly right-size its investments and maintain a sustainable operational footprint.

Amazon is not alone in betting on cloud gaming and games on streaming subscriptions as the next evolution of interactive entertainment. Microsoft (Xbox Cloud Gaming) and Netflix are also aggressively investing in streaming games, setting the stage for intense competition as the technology and consumer appetite continue to mature.

The MMORPG community and the challenge of retention

While Amazon’s broader gaming strategy may evolve, the end of New World highlights another important shift – the changing nature of player engagement in MMORPGs.

Interestingly, New World had found renewed appreciation in recent months. Following several updates, player sentiment had turned largely positive, and many considered it to be the game’s strongest iteration yet. Nevertheless, its player base never returned to the levels seen at launch – recent activity peaked at roughly one-tenth of its all-time high.

Many long-time fans expressed surprise and frustration at Amazon’s decision to shutter the studio just as the game seemed to have found its footing. While this could be seen as a classic “distillation effect” – where only the most passionate players remain – it also reflects a larger shift in how players engage with game worlds.

Today’s gaming communities are more loyal and entrenched than ever, and this is something developers will need to take more into account. The era of multi-genre, multi-game players is fading as gamers devote themselves deeply to specific games, especially those with strong social ecosystems. MMORPGs, by design, demand significant time and commitment. To satisfy their core audiences, they must also maintain a high level of complexity and ongoing development. This makes them resource-intensive and financially risky to sustain, especially once audiences trickle away, back to the game worlds they are most devoted to.

The decline of Western-developed MMORPGs

In an era when players are more time-sensitive, budget-conscious, and socially attached to single games, MMORPGs have become a difficult business case for Western developers and investors.

The perception that even a company as large and well-resourced as Amazon couldn’t make New World a long-term success will likely reinforce the belief that the genre is too risky and expensive compared to other live-service models. Games like Fortnite or Destiny 2, which blend social engagement with more manageable development cycles, offer higher returns and fewer dependencies.

This doesn’t mean MMORPGs are dying altogether. Eastern-developed MMORPGs, particularly from South Korea and China, continue to thrive in their home markets. However, those titles often remain culturally localised, with limited crossover appeal in Western markets.

Unless Western studios can reinvent the genre for modern player expectations, New World may stand as a cautionary tale: The last major attempt at a Western-built MMORPG for some time.