The more important aspect of the sale is that they added Google Play, so now people don't have to root or deal with the awful BN app store. My take is that they realized that there was no way to compete with the ipad mini and Kindle Fire and various Android tablets without opening up their ecosystem and getting aggressive with pricing, so now they can devote their energies to selling books and magazines, instead of trying to compete with an inferior app store.
BTW, the same sale prices are available at Target, which gives 5% off if you use their Redcard. I picked up an HD, downloaded the software update, and downloaded several google apps, including the Kindle one. The default browser is now Chrome, and they added a Gmail app as well, so they must have made a deal with Google, as they did with Microsoft last year.
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