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I haven't understood the price war idea from the beginning. Most people are not format shifters, so they buy a Kindle and buy their ebooks from Amazon or they buy a Nook and buy their ebooks from B&N. It seems to me that the real price war should be on the hardware, not on the ebooks.
Yes, there is a percentage of buyers who will strip DRM and format shift, but I suspect that once you get outside Mobile Read (and perhaps even within MR), the group of strippers and shifters is really small in comparison to the whole group of ebook buyers. Consequently, while B&N might need to war with Apple, Sony, Kobo, and other etailers of ePub format ebooks, there is little reason for Amazon to war with B&N, Apple, etc. as regards ebooks themselves. I'm surprised there isn't more price warring going on with the hardware, which is the gateway.
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