The short answer is yes. The longer answer is…
Yes, but we don’t know exactly what the company is working on.
Amazon has been hiring game developers to work on what are reportedly social and mobile games. That’s as much as we’ve got. The article Amazon Boosting Game Teams in Seattle, CA with Social & Mobile Focus tells you all you need to know about it. Since I’m not a gamer and don’t know anything about games, I’m just going to point you over in that direction and have you read the article there.
This move into game development makes sense to me. More and more we’re seeing Amazon turn from vendor of content to producer of content. Amazon is now a publisher. Amazon is also now helping Hollywood create movies with Amazon Studios. Now that Amazon has its own hardware (Kindle Fire and future Kindle smartphone), it makes sense that the company wants to get in on the action of what software goes in that hardware.
But the details are hazy. Amazon is a notoriously secretive company (not as tight-lipped as Apple, but up there), and as the above-mentioned article states,
Not much is known about what the secretive company is working on, and no sources who suspect Amazon is planning a bigger push into game publishing would comment on the record for this story.
I guess we’ll just have to wait and see.