b0bby sends in a report from ZDNet about the sudden outbreak of a price war in e-reader devices. "On Monday, Barnes & Noble cut the price of the 3G Nook to $199. It also launched a $149 Wi-Fi version. Just hours later, Amazon responded by cutting the price of the Kindle to $189. At $259, the price of the Kindle and Nook just 24 hours ago, an e-reader purchase competed with an Apple iPad, which started at $499 for a Wi-Fi version. Below $200, a dedicated e-reader purchase makes a lot more sense." Sony dropped prices for its readers three months ago, but the move didn't kick off a price war at that time. Some believe that dedicated e-readers are doomed in the long run to lose out to general-purpose devices such as the iPad — and its coming imitators, many of which will be based on Google Android.
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