Rumors suggest Amazon's game console project is still alive

No matter how many times Amazon denies that it's developing a set-top box, the rumors continue to pop up once every six months or so. VG 24/7 is reporting that the company is still working on an Android games console that'll retail for "below $300." Based on gossip from game publishers, the latest indication is that Amazon's product team, Lab 126, has designed a grey oblong similar in size to the PSOne, designed to play both games and Instant Video / Lovefilm content to your HDTV. With rumors of a pay TV service and a future product that's "bigger than Kindle" currently swirling around, we can see how this looks plausible. That said, $300 seems an unlikely price for Amazon to target, when Apple TV and the Roku 3 are so much cheaper, and when other Android consoles are showing only lukewarm demand, so there's still plenty of room for skepticism.