• 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
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • 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
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Qualcomm CEO Cristiano Amon says 2026 is the year AI agents go mainstream—and the smartphone’s reign as your primary device is ending
AIFortune 500: Titans and Disruptors of Industry
Qualcomm CEO Cristiano Amon says 2026 is the year AI agents go mainstream—and the smartphone’s reign as your primary device is ending
By Fortune EditorsMay 10, 2026
7 hours ago
The global economy is experiencing the largest capex cycle ever, with nearly $5 trillion seen by the end of the decade—and it’s not all AI spending
EnergyAlternative energy
The global economy is experiencing the largest capex cycle ever, with nearly $5 trillion seen by the end of the decade—and it’s not all AI spending
By Jason MaMay 10, 2026
7 hours ago
AI wins have Alphabet poised to become world’s biggest company
AIAlphabet
AI wins have Alphabet poised to become world’s biggest company
By Ryan Vlastelica and BloombergMay 10, 2026
10 hours ago
OpenAI CEO Sam Altman says Gen Z and millennials are using ChatGPT like a ‘life advisor’—but college students might be one step ahead
TechOpenAI
OpenAI CEO Sam Altman says Gen Z and millennials are using ChatGPT like a ‘life advisor’—but college students might be one step ahead
By Sydney LakeMay 10, 2026
13 hours ago
Torsten Slok, wearing a suit, speaks on a stage with a gold and black background.
AILabor
‘The gains will be substantial’: The AI shock is looking a lot like the China shock, and a top economist says that’s actually good news
By Sasha RogelbergMay 10, 2026
14 hours ago
Young man working on laptop with headphones in modern coffeeshop
Future of Workskills gap
AI generated identical résumés for a man and a woman: Hers was more likely to be labeled ‘weak,’ while his got a 97% approval rating
By Eleanor PringleMay 10, 2026
17 hours ago

Most Popular

‘This is the way’: Elon Musk endorses Warren Buffett’s famed 5-minute plan to fix the national debt
Economy
‘This is the way’: Elon Musk endorses Warren Buffett’s famed 5-minute plan to fix the national debt
By Jacqueline MunisMay 10, 2026
12 hours ago
'Employers are increasingly turning to degree and GPA' in hiring: Recruiters retreat from ‘talent is everywhere,’ double down on top colleges
Future of Work
'Employers are increasingly turning to degree and GPA' in hiring: Recruiters retreat from ‘talent is everywhere,’ double down on top colleges
By Jake AngeloMay 9, 2026
1 day ago
OpenAI CEO Sam Altman says Gen Z and millennials are using ChatGPT like a 'life advisor'—but college students might be one step ahead
Tech
OpenAI CEO Sam Altman says Gen Z and millennials are using ChatGPT like a 'life advisor'—but college students might be one step ahead
By Sydney LakeMay 10, 2026
13 hours ago
Ted Cruz says the quiet part out loud: Trump accounts are Social Security personal accounts as GOP senator reveals 'dirty little secret'
Politics
Ted Cruz says the quiet part out loud: Trump accounts are Social Security personal accounts as GOP senator reveals 'dirty little secret'
By Jason MaMay 9, 2026
1 day ago
Red flag test: former CEO explains why he rejects job candidates who say they can start right away
Success
Red flag test: former CEO explains why he rejects job candidates who say they can start right away
By Orianna Rosa RoyleMay 9, 2026
2 days ago
Trump thinks he's flying to Beijing with leverage. China spent 6 years making sure he doesn't have any
Commentary
Trump thinks he's flying to Beijing with leverage. China spent 6 years making sure he doesn't have any
By Steve H. HankeMay 10, 2026
14 hours 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.