There is a wide area of applications that use embedded systems, and the number of such systems keeps growing. The required functionality and complexity of embedded systems are also constantly increasing, and development of such products is becoming increasingly harder. This requires new thinking on the product development processes, and one such emerging philosophy is the agile methods. These methods were created by the software engineering community where they are commonly used. Since then, they have been adopted in embedded systems development; however, whether they can improve the embedded systems product development processes remains an open question.