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Twitch "isn't profitable" admits CEO, in wake of recent layoffs (www.eurogamer.net)

submitted 10 months ago by [email protected] to c/[email protected]

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[–] [email protected] 27 points 10 months ago (1 children)

Profitable? I thought it was a loss leader to get people into Amazon's gaming ecosystem.

I'd care if it was profitable when it was on its own, but now that it's part of Amazon, I assumed it was just part of a Prime sub.

[–] [email protected] 4 points 10 months ago* (last edited 10 months ago)

Amazon bought Twitch for its video live streaming infrastructure/tech, which at the time was unmatched. Now Amazon offers that infra/tech via AWS and anyone can spin up a Twitch competitor just as capable.

Amazon doesn't care about Twitch at all. Prime subs are just another benefit to make Amazon Prime more appealing to consumers, but iirc Twitch is the one who actually pays out of pocket for Prime subs.