I started up a Chat on the Kobo site and got the following when I asked if the Sage had been discontinued (bold added by me):
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Hi,
Thank you for contacting Rakuten Kobo.
We sincerely apologize if you have encountered any issues with your device. We truly appreciate your efforts in troubleshooting and trying to resolve the problem. Your satisfaction is our priority, and we're committed to getting this right for you.
Upon checking, Kobo Sage is one of our devices that had been discontinued. Rakuten Kobo is committed to providing the best possible reading experience, which means keeping up with the latest in eReader technology and up to date internet security protocols. As is common with consumer electronics, some of our earliest products have been discontinued and no longer connect or communicate with the Rakuten Kobo eReading platform. We have shifted our focus to the continued software innovation and a regular security update cadence for our current lineup of eReaders, as well as enhancements for future devices.
In this case, we will offer you a device discount code that you can use when purchasing a new device at a lower price. Let us know if you are interested and we can definitely generate a discount code for you.
Yasmine • Just now
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EDIT: I asked if they had any plans for a new 8" ereader model, and got back a generic market-speak non-answer saying:
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... At this time, we do not have any updates on upcoming releases. Our team is constantly working on improving our products and services, but we cannot confirm any new models at this moment....
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