If you click on a link and make a purchase we may receive a small commission. Read our editorial policy.

Amazon is reportedly spending nearly $500 million a year on its video game division

Bloomberg examines Amazon's internal struggles to get its game division off the ground

Amazon's video game division has been struggling to get off the ground, and a report from Bloomberg indicates just how much has been spent trying to make it happen.

Two sources familiar with Amazon's budget told Bloomberg that the tech giant is spending "nearly $500 million a year" operating the video game division.

This number does not include Twitch, the streaming service that Amazon bought in 2014, nor its cloud streaming service Amazon Luna.

Amazon has brought in a number of video game veterans since first setting up its development operation, including Portal designer Kim Swift and Far Cry 2 director Clint Hocking, neither of whom are still with the company.

The Bloomberg report details issues within Amazon including lack of incentives, struggles with its Lumberyard engine, and an internal "bro culture" where women were not afforded the same opportunities as their male counterparts, according to interviews with over 30 current and former Amazon employees.

Amazon's struggles to launch a game include cancelling a number of projects, including fantasy sports game Breakaway and, recently, the hero shooter Crucible.

Its MMORPG New World was delayed out of 2020 and is currently set to go live this spring.