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The rumors I've been reading have them launching a Nexus 8 (8.9?) this year. Supposedly to be built by HTC vs the 7s which were built by Asus. As a reading device this might prove to be less ideal for 2 reasons:
1. Size
2. If they use the same resolution (I'll be surprised if they increase it) that is currently on the 7 that means lower pixel density which translates to less sharp text. In my opinion this contributes greatly to eye strain.
Also, my Nexus 7 goes everywhere with me. I have zero issues with portability.
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Yes I find the 8.9" Kindle Fire awkward to hold for reading especially while lying down in bed. I heard the same rumors about a larger Nexus tablet so we'll wait to see what they come up with. It would be nice to have access to the whole Google Play store. Though you can sideload apps to the Kindle some of them stop working when required updates are rolled out--specifically the games that my ds likes playing such as Clash of Clans.