Amazon has bought game developer Double Helix, the maker of the Killer Instinct on Xbox One.
"Amazon has acquired Double Helix as part of our ongoing commitment to build innovative games for customers," the company said in a statement confirming the purchase.
The deal has some wondering where exactly Amazon plans to go with its gaming strategy, and it may revive rumors that the company is preparing to release its own gaming console.
Not everyone agrees, though.
"Instead of gearing up for a console launch, Amazon is targeting the set-top market—where growth is faster, competition is weaker and it ties in better with its e-commerce and Prime Video platforms," said Todd Haselton, executive director of TechnoBuffalo.
(Read more: Amazon lays foundation for video ad business)
Buying Double Helix makes sense as a way to show off the power of the set-top box versus rivals, but not as a stand-alone console in a tough market.
The purchase builds Amazon's gaming team, as 75 Double Helix employees will now work for the e-commerce giant.
Financial terms were not disclosed.
—By CNBC's Christina Medici Scolaro