Amazon tipped to disrupt Xbox One and PlayStation 4 dominance with new budget Android console

Amazon is rumoured to be developing an Android-based games console which it could release in time for the Christmas holidays, according to Game Informer.

The site, citing unnamed sources with "knowledge of the in-development hardware," said Amazon's rumoured game console could arrive on the market by Black Friday - a move that would add a further layer of intrigue to the gaming market heading into Q3 and Q4.

If Amazon does enter the gaming segment, it would likely price its console as an entry-level system significantly cheaper than the upcoming Xbox One and PlayStation 4. Could budget pricing have a disruptive impact on the market and, by connection, the profits of industry giants Microsoft and Sony?

"Amazon will be leveraging the titles already available on its platform" for the rumoured console, which will have its "own dedicated controller," according to Game Informer.

The reported use of Android is also intriguing. Amazon built out its own heavily forked version of Android for the Kindle Fire. It would be interesting to see what customisations the company would make to Google's operating system for a gaming system.

If Amazon does produce an Android console, it won't be the first to do so.

Startup Ouya, on the strength of a lucrative Kickstarter campaign, released a low-priced Android gaming system earlier this year, but the initial reviews have not been kind to the device and shipping delays have prompted Ouya to offer a cash kickback to disgruntled backers.

Another new player in the gaming hardware business is Nvidia, which began shipping its Shield handheld gaming device late last month.