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Originally Posted by aagstn
I think $50 to $100 is the correct price for the an eBook Reader. This should be a razor blade type business. You give people the reader cheap and make all your money on the books. I personally think Sony doing the $50 deal is partly to get people using their credit card and partly to clear out inventory. I'm betting a new version is on the way.
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I seriously doubt that it's economically viable to produce a "full function" reader in that price bracket - at least not for the foreseeable future. The screen accounts for most of the cost and that's manufactured by a third party, and the costs aren't directly under Sony's control.
Unlike, say, the PS3, where Sony can sell the console at a loss and recoup money on selling games, that's not really feasible with the Reader. Many (perhaps even "most") people will not buy books from Connect - there are so many other sources.
I don't personally feel that $300-ish is unreasonable for the Reader; it's roughly the same price bracket as devices like the iPod, and that certainly sells well enough.