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Amazon Set to Unveil a Game Console

Read MoreHide Full Article Inc. (AMZN - Free Report) is reportedly set to launch an Android-based game console later this year, priced at less than $300.
With this release Amazon, the world’s largest online retailer, will enter into the video game console market dominated by heavyweights such as Sony, Microsoft and Nintendo.
The price of consoles of OUYA and the Nintendo Wii U lie in the range of $95 to $300, while the market price of Sony Corporation’s (SNE - Free Report) playstation PS4 console is $400 and that of Microsoft Corp’s (MSFT - Free Report) Xbox One is $500.Thus Amazon’s Console is likely to be roughly half the price of other modern consoles.
The console’s hardware will be designed by Lab 126, the Amazon-owned Kindle designer. Its size would be approximately the size of the redesigned Playstation One and will run on the Android operating system.
Reportedly, the console will offer games found on the Android App Store, as well as those available on other Android consoles like OUYA or the GameStick. It will also offer the same digital video and audio selection from Amazon Instant and Amazon Prime.
Amazon’s console can have an edge over Xbox one and PS4 due to its lower price but at the same time it will have to prove its worth when compared to similarly or lower-priced consoles such as Nintendo Wii U ($299) and the Android-powered Ouya ($99). But the online retailer’s huge customer base and brand will definitely be an advantage. 
Also, Amazon primarily sells hardware with the intention of creating a platform for media sales. Therefore, this product should help boost its media revenue
Currently, Amazon carries a Zacks Rank #2 (Buy). Another stock worth considering is Conns Inc. (CONN - Free Report) which sports a Zacks Rank #1 (Strong Buy).

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