TechCrunch sources said to be familiar with the company's plans suggest the device will offer support for streaming top tier PC games at 30fps from Amazon's server farms.
Carrying the Fire branding also attached to Amazon tablets, the device has reportedly been in development since April 2013. Amazon is said to have distributed a pre-production version to select app developers.
The WSJ report claims Amazon will ship the device with a simple remote control. A more advanced control, featuring gaming and media playback functionality, may be sold separately.
While pricing remains unclear, the reports also indicate that the device may come with incentives available to Amazon Prime members, such as Amazon Instant Video.