For me this is incremental suicide. For how long will booksellers remain independent if they get lots of money for nothing from the world's biggest bookseller.
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People willing to buy Kindles at Waterstone's were likely going to buy one anyway. Those in love with interoperability and all the superior features of epub would never give money to Amazon and thus won't mind a higher price. Bottom line, Waterstone's makes some money from both customer bases.
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If I would find a Kindle in an independent bookstore I would turn around and run. And never drop a Euro in this shop again. Except if they pay me 10% for each book which I don't buy with a Kindle. This is the suicide part. And in the end I'd buy a Kindle somewhere else.
Cheers,
hansl