Amazon has announced that it is to create sites to sell computer games, other software, home improvement and an expanded gifts area. It is planning to be up and running in time for the Christmas season, and has already announced a major media spend to gain further market share as an online retailer.

Rumours ran riot in advance of today's announcement.

Yesterday Amazon put out an advisory notice that it would "make a significant announcement regarding additions to its product line that will impact the competitive landscape of online shopping."

Speculation had centered around possible deals with Beyond to distribute software and Black&Decker to sell power tools.

Amazon's stock closed up nearly 17% last night.

More information at the BBC.