Amazon.com

is launching its own Game Studio along with a social game for Facebook called ‘Living Classics.’ This is the company’s first major step into videogame development. But with Zynga’s recent downfall, one analyst is questioning Amazon’s decision to invest in social gaming.

“They are late to the party,” Daniel Ernst, principal at Hudson Square Research, told CNBC’s “Squawk on the Street.” “Social gaming was a craze for about two years and now it’s under pressure.” He does not think Amazon should invest in gaming.

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“It seems exceptionally off strategy for Amazon,” Ernst said, explaining that the company is a seller of content and products — not a maker.

Although Ernst disapproves of Amazon’s gaming strategy, he does not think it will impact the company’s bottom line. “The margins on social games are very thin,” Ernst explained. “Even if this is wildly successful, it would be a non-impact for Amazon.”

However, the chance of Amazon’s new gaming platform becoming “wildly successful” may be slim.

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