[f00l]

I doubt they're ready to launch a new device so soon. I would expect to see a new version either late November, or else mid-2009. The product cycle on e-book readers doesn't seem to be crazy-competitive like that for cell phones, pda's, laptops, and mp3 players. Fewer people read. :< Used books are still cheap. :>

I would imagine it's just `the new wore off' and Amazon discounts everything in the end.

Or the people who really wanted them already got one, and now they aim for more of the mass-market. I suspect this price drop will generate news stories and a whole new sales push to those who wouldn't budge at $400. (Remember the Iphone? :>)