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I wonder if this is a battle that Amazon can win. Wal-Mart (and now Target) can underwrite these books and sell them for a penny and over the long-term because of their financial status. Amazon I think would be hard-pressed to compete on price against Wal-Mart over the long-term; it isn't in the same financial league. OTOH, Bezos is willing to lose money (but are his shareholders still willing to do so?), whereas it is pretty clear that Wal-Mart is focused on profits. This will be an interesting battle.
I wonder what B&N will do. It can't ignore the fight but it can't win the fight either. Borders is already on life support; this could be the plug puller for it.
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