The news: Amazon has launched ZeroOne, a stealth team building next-gen consumer products from scratch. Led by Xbox co-creator J Allard, the group operates in Seattle, San Francisco, and Sunnyvale, and is tasked with turning early-stage ideas into market-ready hardware and software.
Allard isn’t the only Microsoft veteran leading Amazon’s renewed devices focus. The company hired former Surface devices lead Panos Panay in 2023, and longtime industrial design lead Ralf Groene early this year.
Why it’s worth watching: Earlier this month, Amazon cut about 100 jobs in its Devices & Services unit, home to Alexa, Echo, Zoox, and Project Kuiper. CNBC reported that ZeroOne is building new hardware and software, citing one job post referencing work on computer vision for a smart-home product.
- Despite recent layoffs, Amazon is still hiring in Devices & Services, with hundreds of open roles, per GeekWire.
- The initiative signals Amazon refocusing its devices strategy, and by extension, a renewed effort to develop hardware that supports its services, subscriptions, smart home, and AI initiatives.
At Microsoft, Allard co-founded Xbox and launched over 40 products and services, including Xbox Live and Xbox 360, over 17 years. Products like Xbox, Windows Phone, and Surface were attempts to package Microsoft’s software and services into new product segments.
Tapping some of the key talent responsible for Microsoft’s transition to devices and services could make Amazon more competitive with Apple, Google, and Meta in consumer devices.
Key takeaway: Amazon is signaling a renewed push to integrate its services into smart, connected devices, just as it begins its AI-powered Alexa+ rollout.
These next-gen devices could define Amazon’s next wave of consumer touchpoints, opening doors to new platforms, interfaces, and home-based engagement opportunities for marketers.