Whether the service will actually come to fruition is anyone's guess, but assuming The Information's coverage is accurate, it's hardly an unprecedented move for the online retail giant.
Sony streams games via its streaming service PlayStation Now, available on PlayStation 4 and PC, and it appears that cloud gaming could be a focus for the next generation of PlayStation consoles. Amazon reportedly is in talks with publishers about distributing their games through the forthcoming service, which could launch as early as next year.
Reported by The Information (via GamesIndustry.biz) sources indicate that the service will be similar to what Microsoft and Google are now building with Project xCloud and Project Stream, respectively. This may have been what Amazon had in mind all along when it acquired Twitch, and then later purchased GameSparks, a cloud outfit in the United Kingdom that builds and deploys gaming backends. Microsoft stated in October that it will begin testing a cloud gaming offering this year to further expand how and where people can play games. The sources that spoke to The Information say that while negotiations are underway, no games or even a firm release date could be confirmed making it hard to corroborate the information with the developers themselves. Rather, Amazon can use computing resources from its powerful cloud servers to run games.
On top of that, Amazon would likely leverage its 100 million-strong Prime service to woo new consumers in, offering free access bundled with everything else that Prime offers.
Google has also jumped into the race to develop a gaming service that transcends the home console, dubbed Project Stream.
This service looks to eliminate the need for expensive hardware to run graphically taxing games.
Verizon is the latest of several big companies working on their own game streaming services.
Amazon has yet to officially confirm the reports.