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You know, I actually feel that Microsoft should not really bother entering the ebook market with a device.
Currently Microsoft make some really good peripherals (mouse, keyboard).
The original Xbox was great but they have dropped the ball on the 360 (rushed to get it out before it was ready IMHO).
The Zune isn't really a big hit (I don't even know if you can buy one here in Australia, never seen one in the flesh).
In my opinion Microsoft should (as much as I don't like proprietary software) concentrate on and build suitable operating system software to run ebook readers. MS have made some good inroads in the embedded OS market, and I think that is where their strength is. To come into the ereader now as a new player you either have to have (a) a damn better price and a damn better product than the competitors, or (b) new innovative device that has demand. As MS has never really been one to innovate in anything but software....the only real way they could compete now is a cheap but brilliant ereader.
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