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We have this rumor since a year or two years ago, or it's just an easy guess that Amazon will also enter gaming industries especially in the emerge of cloud gaming. 

First report was mentioned when Amazon bought GameSparks, an Irish company known for its backend services for game developers such as matchmaking, leaderboards, tournaments, chat, customer analytics and much more. A couple weeks later, a 'flexible set of APIs' for developers called GameOn was revealed packing those features in addition to the ability to ship real-world prizes via

And then CNET is now reporting that two people familiar with the company's plans have confirmed the goal to announce everything next year. Considering we're almost in December, the announcement could conceivably take place in the next few months.

On top off that Amazon are recruiting people from gaming industries; 

" Amazon is all in on games. We believe the evolution that began with arcade communities a quarter at a time, growing to the live streams and e-sports of today, will continue to a future where everyone is a gamer and every gamer can create, compete, collaborate and connect with others at massive scales. If you share our belief that games will produce some of the future’s most influential voices in media and art, and want to help developers around the world succeed and build these next-generation games -- come join us."

and also they opening a job application on linkedin;

Our products need to be highly reliable, secure, and compliant with the most stringent standards, while continuing to drive innovative new use cases like machine vision and game streaming.

Another big reason is their infrastructure with AWS cloud infrastructure server across the globe that compete with Google and Azure or even surpass them .  And also they already have gaming Studios on PC MMO games like New World and a Lord of the Rings free-to-play title 

They can secure both  games as  exclusives and  link or tied  to twitch like how Stadia will be benefit to Youtube.