According to sources that approached Game Informer, Amazon is developing is own Android-based console for release by the end of this year, and mostly likely by Black Friday.
These sources say that the hardware is in-development and Amazon will be leveraging its titles to push sales for the platform. It's reported that each day they will offer one app or game from its stock for free, exploiting its large library. It's also reported that the console will have it's own dedicated controller.
A better question should be, who isn't developing an Android console? With the release of Ouya and NVIDIA's Shield system, rumors behind Google’s hardware, The M.O.J.O, the UNU and at least 20 more pieces of hardware set to drop within a few months, why in the world would Amazon jump into a flooded market? Because, as of June, there were over 900 million activated Android devices, a market too large to ignore. Amazon can use its name recognition to push the hardware.
With the launch of the Ouya there's been some doubt if the market is really worth getting into. Considering over 70 percent of Ouya users haven't paid a cent for a game on their system, using only free-to-play/try titles. Amazon is so big that releasing an affordable piece of hardware seems easily within their reach, we're sure Ouya and its competitors are shaking in their boots.