I would take serious convincing to buy anything other than a Sony Reader now. I've owned 2 Cybook 3s and I've held a Kindle, and Nook. I broke 3 Cybook 3 screens because they have no protection against torsion. I don't believe I could break the 600 or 650 reader I've owned - although I'm not about to try.
I don't think the cost is as significant as people are saying. Electronic readers are cheap in comparison to other portable devices that people are happy to buy. Compare them to a high end smartphone and they are half the price. Compare them to a tablet and they're cheaper, and there's much more expensive tablets.
Some people won't care to spend more than the Kindle and that's fine, it's a capable device, and it's great value for money. But other people will. There's far too many people in this thread who make the assumption that every consumer thinks like them. It's an expanding market and that means there's room for all sorts of products. There is room for a premium product and Sony seem to have the reputation for that already.
If you're going to spend five or six hours a week using one of them, then an extra £50 is not a big deal - in fact if Sony had a £400 reader, rather than the £200 and the extra £200 bought good stuff then I'd own one of those.
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