Amazon has acquired California-based video game developer Double Helix, most famous for its Xbox One launch title Killer Instinct, the retailer has confirmed to Polygon.

"Amazon has acquired Double Helix as part of our ongoing commitment to build innovative games for customers," reads a statement provided by the retailer.

Reports on TechCrunch also indicate that the studio's intellectual properties are part of the deal. Killer Instinct, however, remains at Microsoft.

"We have thoroughly enjoyed working with Double Helix and wish them success in their next endeavour," a Microsoft spokesperson said.

"We want all of our loyal fans to know that the Killer Instinct team at Microsoft is not changing and that the franchise will remain with Microsoft Studios. We remain dedicated to delivering a great experience and plan to announce our new development partner soon. We're excited about the future of this popular franchise."

Amazon's acquisition further fuels rumours that the internet giant is gearing up to launch a video games console (of sorts) of its own, capable of playing games, movies and music - all for under $300.

Source: Polygon, TechCrunch