Surely WH Smith will have to follow and knock £10 off the current list price as well. As no kindle touch available in UK yet, this move could force Amz to drop their basic kindle prices even more in the UK, where according to industry stats they have complete market dominance.
When you consider that the Kobo touch has only been available here for 3 months it's dropped from £109 to £87 which is a steep discount.(approx $35).
Looks like it's 'game on' in the UK for E-readers after years of lagging behind and big ticket prices.