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I think B&N has been doing a good job in differentiating itself from the competitor. Their nook has been in the market for only 1 year but it has made an impact. A product needs to have unique features to stand out so it is not just me too. The touch of color in the 2nd screen, "lend me" and in store reading experience are very unique features offered by the Nook. B&N was also the first to lower the price and came up with a WiFi model; the other players in the industry follow and react to their trend.
The information from various internet sources revealed that B&N has been working on the Nook Color as well as the Nook Kids for a year and it is their plan all along to tap into this market sector. There are other fish out there than just avid readers. The specification of the display screen of the Nook Color is not your everyday cheap Android tablets such as the Velocity Cruz reader or the Pandigital. It is is on par with the iPad and Samsung Galaxy but at half the price. This is a bold and calculated move from B&N to differentiate the nook from the traditional ereaders and expand their holdings to other sectors of the market. It'll be interesting to see how Amazon will respond especially to the Nook Kids.
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