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It may hurt it among avid readers who care about how the screen is for straight text and want e-ink or some other reflective screen.
I hardly think it will fail though as the vast majority of people buying tablets won't be avid readers buying it with the main concern being reading novels, non-fiction and other types of plain text.
It's being marketed as a multimedia device and the screen looks great for the internet, video, games, magazines etc.
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