MobileRead Forums - View Single Post - Will Kobo, Nook and Amazon Touch kill Sony?

rhadin · 05-29-2011, 06:11 AM

I can't tell you whether the Sony higher price is justifiable any more than I can tell you that Kobo and B&N are NOT taking significant losses on their devices. It is not enough to say that because XYZ can sell a similar -- or even identical -- item for $abc that $abc is clearly the correct price. It just ain't so.

One need go no further than recalling Amazon's selling of ebook "bestsellers" for $9.99. Amazon may well have thought that $9.99 is the ideal price for such books, but the fact is that Amazon was selling ebooks at that price at a loss. Consequently, it is difficult to argue that $9.99 is the price that every bookseller should charge as not every bookseller can absorb the loss by selling another TV at a profit.

Sony's income is largely hardware based; Kobo and B&N are not hardware-based companies. Like Amazon, they want to bring people into their eco system. Yes, MobileRead folk know that they can buy ebooks at other booksellers, strip the DRM, and read the ebooks on the device of their choosing. But you cannot equate the more sophisticated/knowledgeable MR ebooker with the average reader. The average reader buys a Nook because they like to shop at B&N and don't know or care about other bookstores.

FWIW, I also think comparing the Sony hardware with the forthcoming Kobo/Nook touch devices is not as straight forward as some people imply. Let's not forget that the firmware for the Sony permits the user to do things that -- at least as so far disclosed -- it does not appear that the Kobo/Nook touches can do, such as freehand drawing/note taking and the ability to switch amongst dictionaries. These things may not be important to you, but for some of us they are important and justify a premium price.

Like others, I paid the full price for both my 505 and 950 and I do not regret having done so. I think the Sonys were/are worth the price differential. As I've said before, my 505 is 3.5 years old, has been wholly problem free right out of the box, and continues to work perfectly. I have more than amortized the price differential.

05-29-2011, 06:11 AM	#133
rhadin Literacy = Understanding Posts: 4,833 Karma: 59674358 Join Date: Dec 2007 Location: The World of Books Device: Nook, Nook Tablet	I can't tell you whether the Sony higher price is justifiable any more than I can tell you that Kobo and B&N are NOT taking significant losses on their devices. It is not enough to say that because XYZ can sell a similar -- or even identical -- item for $abc that $abc is clearly the correct price. It just ain't so. One need go no further than recalling Amazon's selling of ebook "bestsellers" for $9.99. Amazon may well have thought that $9.99 is the ideal price for such books, but the fact is that Amazon was selling ebooks at that price at a loss. Consequently, it is difficult to argue that $9.99 is the price that every bookseller should charge as not every bookseller can absorb the loss by selling another TV at a profit. Sony's income is largely hardware based; Kobo and B&N are not hardware-based companies. Like Amazon, they want to bring people into their eco system. Yes, MobileRead folk know that they can buy ebooks at other booksellers, strip the DRM, and read the ebooks on the device of their choosing. But you cannot equate the more sophisticated/knowledgeable MR ebooker with the average reader. The average reader buys a Nook because they like to shop at B&N and don't know or care about other bookstores. FWIW, I also think comparing the Sony hardware with the forthcoming Kobo/Nook touch devices is not as straight forward as some people imply. Let's not forget that the firmware for the Sony permits the user to do things that -- at least as so far disclosed -- it does not appear that the Kobo/Nook touches can do, such as freehand drawing/note taking and the ability to switch amongst dictionaries. These things may not be important to you, but for some of us they are important and justify a premium price. Like others, I paid the full price for both my 505 and 950 and I do not regret having done so. I think the Sonys were/are worth the price differential. As I've said before, my 505 is 3.5 years old, has been wholly problem free right out of the box, and continues to work perfectly. I have more than amortized the price differential.