Why Amazon’s Prime Gaming Couldn’t Beat Steam

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Why Amazon’s Prime Gaming Couldn’t Beat Steam

Amazon, the online retail giant, once set its sights on conquering the PC gaming market, aiming to dethrone Steam, the reigning champion. However, despite significant investment, Amazon’s Prime Gaming fell short. Former Prime Gaming VP Ethan Evans recently shared insights into this David-and-Goliath story.

The Challenge of Unseating a Titan

Valve’s Steam, launched nearly two decades ago, had already become the go-to platform for PC gamers. It wasn’t just a store; it was a complete ecosystem. Evans explained that Amazon, even with acquisitions like Reflexive Entertainment and Twitch, couldn’t sway gamers. Even their cloud gaming service, Luna, failed to gain significant traction.

Understanding the Gamer’s Mindset

According to Evans, Amazon made a critical error, they underestimated the power of existing user habits. Steam offered more than just a marketplace.

Here’s what Steam offered:

Gamers were already satisfied. Amazon needed to provide something revolutionary to encourage a switch, and it failed to deliver.

Lessons Learned from the Gaming Arena

Evans highlights a key takeaway, truly understand your target audience. It’s crucial for all businesse to build a connection with customers and rigorous testing assumptions are essential before launching major initiatives.

Steam’s Continued Dominance

Today, in 2025, Valve remains the leading PC gaming marketplace.
The platform continues to evolve, Recently,
Valve

The story of Prime Gaming versus Steam serves as a reminder, even for giants, understanding the customer is paramount to success.

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