Sources inside the game publishing world suggest that retail giant Amazon is getting ready to launch a dedicated games and entertainment device before the end of 2014, priced under 300 dollars (225 Euro).
VG247 says that anonymous executives are saying that the new platform will compete directly with the Xbox One, the PlayStation 4 and the Wii U.
The Amazon device will stream and download video games, music, movies and television shows.
The sources are saying that the unit currently being shown to companies is about the same size as the first PlayStation, grey with some sharp edges.
A full redesign is planned before the Amazon platform is shown to the general public.
The same company that has also created the Kindle is working with Amazon.
The company will benefit from an already existing customer base and has shown with its previous ventures in hardware that it is willing to lose money for a while in order to dominate a market.