The world and internet have changed significantly in 22 years. Microsoft were too early to the party in 2013 for a "digital only console" and 7 years later both MS and Sony shipped a digital only console.
The problem that Amazon has is that it is very, very easy for people to compare pricing. So they will have to be very clever to come up with some pricing segmentation that people will accept. They already do this to some extent with a "club member fee" segmentation with Amazon Prime. The problem they had there is that so many people signed up for Prime that it doesn't work as an effective price discrimination segment any more.
Also, they have to deal with sellers. If you remember it was once upon a time that if you had Amazon Prime, you could buy items cheaper (including shipping) than non-prime members, because that hefty $75 fee made a "special members group" that could be directly marketed to. But now if you calculate shipping and price it is the same for Prime and non-Prime (if non-Prime selects two-day delivery).
