The question of how Amazon's Kindle would cope following the arrival of iPad appears to have been answered, with a new device set to take on Apple's magical tablet.

Rather than remaining focused solely on ebooks, the New York Times reports job postings on Lab 126's website – the division responsible for developing Kindle – suggests Amazon is looking to develop a new Kindle device that would more closely resemble a tablet PC.

The paper reports Amazon is looking to fill three positions within Lab 126, including a software quality assurance engineer, a software development test engineer and a buyer/planner.

Speculation therefore suggests the new device – whatever form it may take – is moving into the testing stage of development.

Gunning for games

However, more interestingly, the paper also claims "several people working with Amazon" who "are not authorised to speak publicly about products in development" have claimed Amazon representatives have been meeting with games publishers to discuss bringing titles to a new version of Kindle.

Such a move would, clearly, place Kindle in the middle of iPad's chosen market, representing the first major challenge - at least from a gaming perspective - to its business since launch.

Amazon also bought touchscreen specialist Touchco back in February, further adding to speculation that an 'iPad killer' is in the works.

Steve Jobs is more than aware of the threat Kindle already poses to Apple's business, having claimed during the iPad announcement that Amazon had "done a great job" with the device, but that Apple was planning to "stand on their shoulders and go a bit further".

[source: The New York Times]