I don't understand what is the fixation with $99 price. I think the e-readers are pretty cheap already - considering how much we spend on gadgets in general.
Another problem with unrealistic pricing expectations is that it's pretty anticompetitive. Large companies can fight price wars and in short term there is a tangible consumer benefit. However, in the long run it buries smaller competitors, raises the barriers of entry to other players eventually leading to fewer choices in the market and harm to the consumer.
How does that saying go? Not everything that shines in gold!
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