Amazon.com, Inc. (NASDAQ:AMZN) has officially confirmed the acquisition of video gaming studio Double Helix Games. The online retailer didn’t disclose financial terms of the deal. But experts say Amazon purchased the studio for patents and talent both.

Amazon

Will Amazon launch its own gaming console?

The acquisition has fueled recent rumors that the Seattle-based company is planning to launch its own gaming console. VG247.com reported last week that Amazon is planning to release an Android-powered gaming console with a price tag below $300. It will compete directly with PlayStation, Xbox One and Nintendo. It will also pose a significant threat to microconsoles like Gamestick. Amazon.com, Inc. (NASDAQ:AMZN)’s 200 million user base should give it an edge over others.

Headquartered in Irvine, California, Double Helix Games was formed in 2007 after the merger of Shiny Entertainment and The Collective, Inc. The gaming studio currently employs 75 people. Rumors about the deal initially surfaced after Amazon and Double Helix Games sent out an invitation to joint recruiting event in Los Angeles that will take place on February 13.

Deal will boost Amazon’s gaming portfolio

Amazon.com, Inc. (NASDAQ:AMZN)’s efforts in the gaming industry have been pretty quiet. Amazon Game Studios already has many titles, but the acquisition of Double Helix will give it more high profile IP and talent. Shiny and The Collective, which merged to form Double Helix, have a solid history of creating breakthrough games. They have created titles like “Earthworm Jim,” “Enter the Matrix,” “Sacrifice, MDK,” “Buffy the Vampire Slayer,” and “Indiana Jones and the Emperor’s Tomb.”

After the merger, Double Helix Games has developed titles like “G.I. Joe: The Rise of Cobra,” “Killer Instinct,” “Silent Hill: Homecoming” and “Green Latern: Rise of the Manhunters.” Its upcoming title “Strider” will be released later this month on Play Station 3. Amazon.com, Inc. (NASDAQ:AMZN) said it will support Double Helix’s current titles and future developments after the acquisition.

Amazon.com, Inc. (NASDAQ:AMZN) shares jumped 1.25% to $350.78 at 9:32 AM EST. The stock has returned 33% over the past 12 months.