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Originally Posted by Kali Yuga
I dunno, I think Sony is probably done. Despite getting into the market first, they just don't have a brand identity that is associated with books, while Amazon and B&N obviously do. They would've been much better off building ebook devices for an existing chain of bookstores at the outset.
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I can definitely see them working with the book sellers in the future, but to be fair to them, when they started that wasn't really an option since none of those companies had really started to push things.
As far as their brand identity, they will still be seen as a premium hardware maker and brand overall, so will be more of a premium offering from whatever bookstores they work with in the future.
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Also, I suspect Amazon is at least temporarily suspending its previous strategy (profiting from both device and ebooks) in favor of profiting primarily off the ebooks. I'm pretty sure Sony was planning to make money from the device, in which case the price war is going to seriously hurt them.
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Amazon are probably still making money from the hardware, but things like an expanding market and the change to agency pricing will have boosted their profits so they can afford to make less profits per device.