[vgiridar]

There is some justification in worries regarding B&N. This is the first device from a bookseller. So in a way the buyers of nook could be from loyal B&N customers. Hence instead of buying hardbacks, they buy ebooks cutting into B&N's profitability. Moreover directly pitching nook against kindle may not be a smart strategy. If Kindle could wipe out Sony despite Sony being early into the market just goes to show how amazon can take on competitors and win. Now it is Sony doing all catching up. Already Sony touch edition may be a non-starter after Kindle prices have been slashed. God bless Daily Edition. Moreover on ebooks front, Amazon would be hard to beat and with minor adjustments, they can be available for Nook as well. Kindle software for PC edition is a pointer to that direction. If B&N wanted to sell Nook at a discount hoping to make money on ebooks, that is simply not going to happen.

Amazon can reduce prices drastically as recently done with competition with walmart and target due to their huge profitability as announced recently. The brick and mortar stores cannot compete on prices with internet stores. If nothing else people can always buy from amazon just to save on taxes as B&N would need to charge taxes in most if not all states.

B&N has been forced into the ebook market due to market forces. To win in this market would be a different thing altogether.

Just to confirm I love B&N and I think we need them to survive as students walk into the local stores and enrich and supplement their knowledge. I frequently do.

I hope B&N does well and survives in long-term. But not too many people have taken Jeff Bezos head-on and came back smiling