The problem with the flood argument to drive prices down is unlike the video game crash of '83 and to a degree the .com crash in 2000-2002 is that the general public is more aware of brands and features.
In other words....if someone releases a generic crap ebook reader they know it's the companies crap ebook reader and that it isn't indicative of ALL ebook readers.
What might bring some prices down is if some company(ies) decides to get some exclusive textbook rights...or exclusive author (fat chance with today's economy)..
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