The service would allow users to ditch physical discs, and instead simply play games by streaming them online, according to the report.
However, it claims that Amazon is already in talks with publishers about possible titles that would be included on the service.
The report cites ‘two people in the know’, who say that the service won’t be available until 2020 at the earliest.
Amazon isn’t alone in its gaming streaming ambitions.
Last year, several reports claimed that Microsoft was developing a streaming-only console, while Google did a trial of a streaming service back in October.