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Fact check: Https://www.pcgamer.com/gaming-industry/amazon-apparently-thought-it-was-gonna-compete-with-steam-since-the-orange-box-but-prime-gamings-former-vp-admits-that-gamers-already-had-the-solution-to-their-problems/

Checked on February 20, 2025

1. Summary of the results

Amazon's attempts to compete with Steam in the gaming market have consistently failed, despite multiple strategic approaches spanning over a decade. Former VP of Prime Gaming, Ethan Evans, acknowledged that even though Amazon was 250 times larger than Steam, they could not "crack the code" of winning over gamers [1]. Their attempts included:

  • Acquiring Reflexive Entertainment
  • Creating a PC games store through Twitch
  • Launching the Luna game streaming service
  • Acquiring Twitch itself [2] [1]

The company's gaming division has faced significant setbacks, including:

  • Cancellation of five major video game projects
  • Removal of their racing game from digital stores
  • Layoff of 180 workers from their gaming division [3] [4]

2. Missing context/alternative viewpoints

The original headline doesn't capture the full scope of Amazon's gaming industry challenges. Beyond their failed Steam competition, Amazon faces broader issues:

  • Development Struggles: The company lacks gaming infrastructure and console business presence, with internal cultural issues and management problems hindering game development [3]
  • Industry-wide Challenge: Even Epic Games Store, despite Fortnite's success, struggles to move users away from Steam, indicating this isn't just an Amazon-specific problem [5]
  • Current Strategy: Amazon is now refocusing on Prime Gaming and game publishing, with ongoing projects including Throne and Liberty, Blue Protocol, and future Tomb Raider and Lord of the Rings titles [4]

3. Potential misinformation/bias in the original statement

The headline oversimplifies a complex situation and potentially misleads readers in several ways:

1. Timing Perspective: While the headline focuses on The Orange Box era, Amazon's attempts to compete with Steam were actually multiple and evolved over time from 2009-2020 [6]

2. Core Issue Understanding: The fundamental problem wasn't just that "gamers already had the solution" - Amazon fundamentally misunderstood that Steam was more than just a store, but a comprehensive ecosystem including social network, library, and trophy case features [6]

3. Market Dynamics: The headline doesn't acknowledge that size and visibility alone aren't enough to disrupt an established platform - new entrants must offer something substantially better to succeed [5]

This story benefits multiple parties:

  • Valve/Steam, as it reinforces their market dominance
  • Gaming media outlets, who can frame Amazon's failures as cautionary tales
  • Amazon's competitors in the gaming space, who can point to these failures in their own market positioning
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