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Actually, something here doesn't add up. If publishers made $2.15 in profit on an e-book and only 29¢ profit on a paper book, they'd be over the moon about the e-books. That's probably why I misread it at first, assuming that paper books making more for the publishers.
It also seems very unlikely that Amazon will routinely boost e-book prices to $12.95 for all their books, especially if B&N's e-books wind up with that pricing (as they apparently plan). More likely is that they're hammering on the $9.99 price point, make a profit on most books at that price point anyway, and will use whatever means at their disposal to get the publishers to cut their wholesale e-book pricing.
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