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I think another reason Amazon is looking at the ebook as a way to save money on their book inventories and book warehouse costs. So even if they are not making money off the ebook sales, they are saving costs from other aspects of their business. But, I think they should subsidize the device instead of the ebooks. The reason why I hadn't bought Amazon Kindle is because it is so damn expensive.
By the way, I feel that Amazon is trying to make Kindle format the standard format of ebook business. Will they succeed? I don't know but I think it is worth it to try. By controlling the format, they control the publishers.
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