Price war? B&N gets aggressive: Nooks at US$149-199

[switchman2210]

Originally Posted by DarthV

Sony has been selling the prs-600 for $180 here in Canada

They are doing it here in the USA also. But I believe it is to clear the supply chain in order to introduce a new model in the next few months. I do not believe they will maintain this price going forward. I believe their next 6” device will sell for ~$250USD MSRP. I believe they will introduce a larger format device i.e, 9 inch, in the ~$399USD range. This is just my opinion.

[boswd]

Originally Posted by luqmaninbmore

Given that the 3G is only used to access the B and N store, why would anyone purchase the 3G nook? Is buying a book while standing in line at the supermarket that important that it's worth 50 bucks? The only use I would have for the 3G is getting my paper delivered when I'm on vacation and away from a hotspot. At home, wifi would be just as easy.

there's buying when you are commuting back and forth from work by the train, if you do, there's sitting in a park, it's the fact you can be anywhere and still be able to download a book.

and also to be able to purchase a book via barnes and nobles website and still have it on your Nook wirelessly without a wi fi connection.

I understand what you are saying but until you have that feature of 3G and Wi fi, it's hard to explain how great the feature is.

[fjtorres]

Originally Posted by dmaul1114

But otherwise, yeah, WiFi is good enough for most people.

And *that* is the aggressive part of the move.
Home WiFi networks are increasingly common so for people who don't think they'll need to buy books at an airport (a common example) being able to directly buy wirelessly from the reader (without a PC) through WiFi makes it a 1-to-1 replacement for the 3G model but one that doesn't incur any bandwidth fees for B&N.
And they're doing it a the price of a Kobo or a Sony PRS-300.

I wouldn't be surprised if as many as 80% of Nook buyers will be equally well served by the WiFi model as the 3G model (and B&N had better be ready for this) and for those buyers, B&N just dropped the ante by over 40%.

Aggressive is being mild.
The WiFi Nook would be interesting at $199; at $149 it is outright tempting.

And the fun is just starting; it's pretty clear Amazon is cooking up a comparable K3. B&N hitting $149 first takes the wind out of that announcement...

...unless Amazon goes for blood and jumps straight to $99.

($139 is more likely, though.)

[dmaul1114]

Yep, I love my Kindle, but I'd honestly be fine with just WiFi. I travel reasonably often, but I usually load up with books before I leave.

The one exception was my trip last week. I was swamped before it, and to tired to figure out what to buy the night before the trip, so I did use the 3G in the airport to shop before getting on the flight.

But otherwise, I'm fine with WiFi and not 3G myself. One or the other is a must though as I get sick of having to hook up devices via USB to transfer stuff. It bothered me less when I had a desktop and just had a USB cable always plugged in and laying on the desk to hook up devices. But being a laptop only household now it's a hassle to find the cable hook it up, unhook it etc.

[DarthV]

Originally Posted by switchman2210

They are doing it here in the USA also. But I believe it is to clear the supply chain in order to introduce a new model in the next few months. I do not believe they will maintain this price going forward. I believe their next 6” device will sell for ~$250USD MSRP. I believe they will introduce a larger format device i.e, 9 inch, in the ~$399USD range. This is just my opinion.

Yes, Sony is definitely getting rid of stock in anticipation of new models, but with the Nook WiFi, they may have to change the price on their 6" device to compete. Which is good for us

[fjtorres]

Originally Posted by switchman2210

They are doing it here in the USA also. But I believe it is to clear the supply chain in order to introduce a new model in the next few months. I do not believe they will maintain this price going forward. I believe their next 6” device will sell for ~$250USD MSRP. I believe they will introduce a larger format device i.e, 9 inch, in the ~$399USD range. This is just my opinion.

That *is* how Sony operates. Standard M.O.

But this time it won't fly.
The market has made it clear it values wireless more than it values touch screens. Even if you make the two features interchangeable, it means their PRS-600 replacement is going to *have* to be no more than $199. And the PRS900 at $349 (tolerable yesterday) is suddenly almost twice the new benchmark.

Simply put: *every* ebook reader is going to be weighed against the WiFi Nook. Does it have comparable features? Is the price comparable? And if its priced higher, do the added features justify the cost?

That is what Sony is facing.
And for a large format wireless reader, $399 is going to be a tough sell.
At that price it had better be best in breed.
And Sony Readers haven't been *that* competitive for years. Good solid buys, yes. Best in breed? No.

This move is going to make waves for a while.

[m-reader]

Originally Posted by fjtorres

That *is* how Sony operates. Standard M.O.

But this time it won't fly.
The market has made it clear it values wireless more than it values touch screens. Even if you make the two features interchangeable, it means their PRS-600 replacement is going to *have* to be no more than $199. And the PRS900 at $349 (tolerable yesterday) is suddenly almost twice the new benchmark.

Simply put: *every* ebook reader is going to be weighed against the WiFi Nook. Does it have comparable features? Is the price comparable? And if its priced higher, do the added features justify the cost?

That is what Sony is facing.
And for a large format wireless reader, $399 is going to be a tough sell.
At that price it had better be best in breed.
And Sony Readers haven't been *that* competitive for years. Good solid buys, yes. Best in breed? No.

This move is going to make waves for a while.

You are on the money with most of what you said here. I'd only disagree on your assertion that a $399 large format e-reader wouldn't sell. I know a bunch of people (including myself ) who would pay $500 easy for a decent 9" device in a flash.
Granted they wouldn't be selling as many of them, but there is a market of professionals out there just hanging for that 9"+ Skiff or Que or whatever to come out already.

[dmaul1114]

Originally Posted by fjtorres

That is what Sony is facing.
And for a large format wireless reader, $399 is going to be a tough sell.
At that price it had better be best in breed.

Especially when the low end iPad is $499. And I'm sure some of the Android and other competing tablets that come out will be even less.

I think big screen e-ink devices are largely dead. The tech is just too expensive to compete with tablets at that screen size, and there aren't enough die hard readers/e-ink enthusiasts who need 9"+ screens to keep the large screen e-ink niche alive IMO--as that's a small niche with in a niche.

Smaller screens there are for sure with the novel reading market etc. But big screens I see tablets killing off.

I work in higher ed, and all my colleagues are more interested in tablets than say a Kindle DX or Que. Can read all our A4 PDFs or research articles on them, but also do internet, e-mail, watch video, replace laptop for travel etc. Anecdotal, but I just don't see the big screen e-ink devices surviving the onslaught of tablets.

[Ervserver]

R.I.P. Kindle

[dmaul1114]

Originally Posted by Ervserver

R.I.P. Kindle

I don't see that at all. Amazon will just match price on the 3G model and put out a wifi only model at $150.

They have the name recognition and customer base with being one of the largest (if not the largest) online stores etc.

They also have the money to make it impossible for competitors to under price them as they can take more of a loss per unit that B&N or other competitors.

[Rich_D]

Originally Posted by Ervserver

R.I.P. Kindle

Nah. Amazon will soon release something similar. A pricewar will benefit the consumer and will start pulling in some "on the fence" consumers. My wife is now considering the $149 nook.

[tamzilla]

B&N also just added free access to any AT&T wi-fi hotspot with the new 1.4 firmware revision today, so that makes the wi-fi only version of the nook look even better.

[luqmaninbmore]

Originally Posted by boswd

I understand what you are saying but until you have that feature of 3G and Wi fi, it's hard to explain how great the feature is.

I own a Kindle and I have owned a nook, so I'm familiar with the features. With the Kindle, you had basic web-surfing so the 3G connection really brought a lot to the plate. With nook, not so much. I tended to have my periodicals delivered at home and to do most of my ordering from home.

[fjtorres]

Originally Posted by Ervserver

R.I.P. Kindle

To the tune of the Hallelujah Chorus:

Wish-ful thinking!

[Teddman]

Amazon MUST cut. They should immediately drop the Kindle 2 price. It's long overdue.

This also takes a lot of wind out of the sails for the supposed cheap wi-fi only model Kindle they were rumored to announce later this summer.

Barnes & Noble really came out of nowhere with this announcement.