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No hard facts behind this, but from theoretically "informed" reports the Mini just didn't sell enough numbers to justify keeping it (and larger smart phones has also likely ate into the market for a small device for out and about). And from more official reports Kobo was floored by the demand for the Aura HD when it was released as a limited edition (which was why it became a regular item) and has continued selling well which is why we're seeing a new big device. It's unfortunate for those wanting a small device, but that's the business reality. And while the mini runs the "same" firmware as the other devices, it is just enough different (I believe the interface etc are different) that it would cost them for development time to keep it up to date on top of inventory costs for the devices.
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