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The PRS-505 and the Kindle DX are totally different "beasts". Which do you want? A portable device which you can take with you everywhere, and which is great for reading novels on, or a much larger and less portable screen on which to read more complex layouts?
I have both a CyBook Gen3 (6" screen, the same as the Sony PRS-505) and an iRex DR1000 (10" screen). I would not want to be without either, but they in no way whatsoever "compete" - they are completely different, and complimentary, devices.
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