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Like many of its predecessors, the 2020 edition of Amazon.com’s Echo / Alexa event (AMZN) was packed with announcements for hardware, software and services.
Among other things, Jeff Bezos’ signing revealed new Echo speakers and Fire TV devices, a revamped Fire TV user interface, Alexa enhancements, a cloud gaming service known as Luna, a security service known as Alexa Guard. Plus, Ring security products for cars, and a $ 250 home security autonomous drone that for some reason was called the Always Home Cam.
Here are some thoughts on what Amazon showed.
1. Amazon’s cloud gaming service isn’t for everyone, but it has a selling point or two
At the moment, the Luna cloud gaming service has more in common with Alphabet’s Stadia gaming service (GOOGL) than with Microsoft’s xCloud service (MSFT).
While xCloud is bundled with an existing gaming service (Xbox Game Pass Ultimate) and currently only works on Android devices, Luna, like Stadia, is a standalone offering that runs on Fire TV devices, PCs, Macs, and iOS web apps. (an Android version the app is said to be on the way). And like Google with Stadia, Amazon has developed an optional low-latency driver for Luna (it costs $ 50).
There’s also the Twitch integration, the ability to switch from gaming on one device to another. Unlike Stadia, whose $ 10 / month Pro service supports 4K games, many Luna games only support 1080p games for now. But Luna’s pricing model appears to be better.
While Stadia includes access to a small number of free titles and requires users to purchase new game licenses for everything else, Amazon plans to sell subscriptions for a variety of Luna’s gaming “channels.” A Luna + channel has an introductory price of $ 5.99 / month and includes access to games like Resident Evil 7, Control Y GRIDand a channel with Ubisoft games is on the way.
I wouldn’t count on Luna seeing massive initial registrations, given her current content and gameplay limitations. And xCloud should become a formidable rival once it adds support for TVs and PCs. But Luna could get a healthy following as new channels are added, 4K support expands, and gamers become more familiar with cloud gaming services.
2. Fire TV revamp better positions Amazon against Roku – up to a point
Amazon is revamping its $ 40 HD Fire TV Stick with a faster processor, improved remote, and Dolby Atmos audio support. And it’s releasing a $ 30 Fire TV Stick Lite that has a simpler remote control and lacks Atmos support, but is otherwise very close to the $ 40 model. Those who want 4K support will need to buy the Fire TV 4K device. existing, which sells for $ 50.
Separately, Amazon has revised its Fire TV user interface, simplifying navigation and adding support for user profiles.
Amazon’s moves put it in a somewhat better position against Roku (ROKU), which sells a $ 30 HD-capable device and $ 40 and $ 50 4K-capable devices (the $ 50 model adds a remote for voice and better Wi-Fi radio). But since Roku (like Amazon) has long treated its streaming hardware as a loss leader, neither company has a huge price advantage yet.
More importantly (speaking as an owner of a Roku device and a Fire TV device), it can be said that Roku still has an advantage in the user interface. Although an improvement, the new Fire TV UI still emphasizes / promotes Amazon’s own content relative to third-party apps, while Roku takes a much more neutral approach.
3. Echo / Alexa enhancements showcase Amazon’s voice assistant and speaker strengths
Amazon’s new Echo and Echo Dot speakers feature eye-catching spherical designs, and with the help of a low-power processor jointly developed by Amazon with Taiwan’s MediaTek, they can respond to voice commands faster thanks to support for the device. speech processing.
Meanwhile, Alexa has been updated to ask users questions to help them better understand their intent, change their tone based on the nature of a question, and allow multiple users to join a conversation. Alexa also now allows privacy-sensitive users to delete their voice commands that Alexa has recorded with a single command.
The Google Assistant still has an edge over Alexa in terms of the depth of the knowledge base it has access to, and its integrations with Google services like Calendar, Photos, Gmail, Maps, and YouTube also remain a major strength. .
But Alexa shows more emotional intelligence than the Google Assistant: it avoids superfluous comments, asks follow-up questions, and alerts users to new features and notifications when it makes sense to do so. And in general, Amazon seems to be paying close attention to getting the finer details of a user’s interactions with a smart speaker or voice assistant, as its announcements on Thursday show.
4. It is worth remembering here the strategic objectives of Amazon
In a way, Amazon is the anti-Apple when it comes to hardware.
In general, Amazon is not interested in profiting (or at least profiting significantly) from hardware sales. And as Jeff Bezos has often emphasized, the company doesn’t mind if some of its products and services fail, particularly experimental products targeting promising markets.
More than anything else, Amazon wants its hardware to help keep customers loyal to its wide range of e-commerce and content services, and by proxy Amazon Prime. And in the process, the company hopes that frequent use of devices such as Echo speakers and Fire TV devices, as well as Amazon’s partnership with advanced devices and services, will strengthen the power of the Amazon brand and consumer awareness.
That’s why the company is comfortable simultaneously launching three smart speakers, two streaming devices, two Wi-Fi routers, car security hardware, a home security drone, and a smart display with a swivel base of facial tracking.
Not all of these devices will be huge hits, and Amazon won’t make a lot of money (if it does) from some of the ones that sell well. And Amazon is pretty cool with all of that.
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