If a report by VG247 is true, Amazon's plan to slowly take over the world is expanding to the video game console arena. VG247 reports that multiple sources have confirmed Amazon will be launching "a dedicated games and entertainment device" some time this year. Like its Kindle devices, it'll run an Android operating system and is actually being created by the designers of the Kindle devices, subsidiary Lab 126.
According to the sources, the Amazon Android console "will compete directly with Sony, Microsoft and Nintendo, offering the streaming and download of games, music, movies and TV content" – all at a price point below $300. Personally, I don't see this directly competing with those big names, but rather the other Android gaming devices currently available: the Ouya, PlayJam's GameStick, and the NVIDIA SHIELD. There's also the PS Vita TV, currently only available in Japan, but with a Western release in the future highly likely. When compared to all those, Amazon's offering no longer seems that competitively priced.
Still, one thing Amazon has that the Android-gaming competition does not is a large, loyal customer base. According to VG247, Amazon enjoys a customer base of 200 million, with ten million subscribed to the $79/month Amazon Prime service. That number is only expected to grow. Amazon also has its own games development team, so expect that to ramp up with the introduction of this device.
Take this all with a grain of salt though – it's still just a rumor and we've been hearing similar rumors for awhile now.