Amazon's gaming division has been significantly impacted by the company's layoffs, with work on first-party games and MMOs being scaled back. The layoffs have reportedly affected a substantial number of employees, with some outlets suggesting the number of impacted workers is around 14,000, while others report it as 16,000. The company appears to be shifting its focus towards casual and AI-focused games, with some speculation that certain high-profile projects, such as a Lord of the Rings MMO, may have been cancelled.