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Yeah, I know of Amazon also doing research to color e-ink displays.
Highly probably you'll lose 1/3th of the resolution (eg: 800x200,or 267x600 pix) due to RGB needing 1 pix.
They'll need to increase display resolution, and probably increase performance of the processor too.
So far I see little benefit. Besides the cover, a book usually is B&W.
Perhaps it would be interesting for mobile internet devices;that support anything but displaying moving images (like flash, .mov, .avi, or moving GIF's).
So if they want to keep the 800x600 resolution, battery life will go from 8000 pageturns to 2600 pageturns, or from 2 weeks on a PRS-505 to 4,5 days of battery life.
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