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It seems that B&N made a pretty serious mistake with this device. They went with flash instead of substance. The core functionality of this reader is actually a step back from the Kindle. The core features are book buying experience, book selection and price, battery life, screen contrast, annotation, and refresh rate.
The nook is inferior on battery life, refresh rate, and probably book selection/price. This is a fairly substantial under performance it seems. I would not be surprised if this product fails or is even discontinued.
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