Microsoft Return to eBooks Via Nook

The breaking news that Microsoft have bought heavily into Barnes and Noble to create a new venture which encompasses their Nook, digital and college business is shall we say a surprise and a significant move for both parties. Microsoft will invest some $300 million for a 17.6% stake in the new venture which will be valued at some $1.7 billion.

Obviously, the dust has to settle and much has to be revealed, but it has obvious to many that B&N needed a partner with clout and deep pockets and Microsoft certainly can bring that to the table, but they also needed a global partner and Microsoft ticks that box too. Microsoft also needed to get back into the mobile marketplace but had previously walked away from ebooks at  that famous BEA in 2008 when they literally dropped Windows BookSearch.

So B&N divides, its business gets some cash, raises its valuation and gets a big brother with only a minority stake today and potential for more investment in the future. That is certainly good business for B&N and one which must seem like Christmas to their investors.

The questions are now about speed, focus and how Microsoft’s interests are projected onto an Android platform. We still have to see how the international offer develops and the sixty four dollar question remains over Microsoft’s sticking power and whether if the going got tough they would simply walk away again.

New Sony Reader and other EInk Runners

Sony
It appears to be the worst kept secret that Sony is about to launch next month a new ereader, some say two. We have seen the signs coming with they lowering of the price of their existing readers through ‘special deals’ and the fact that their current offer looks as exciting as an old desktop PC in the tablet mobile world.

So what do we expect and will it make a difference and reverse what is clearly an also ran offer? Lighter, improved page turns and contrast, increase memory and maybe free 3G! We think its too early to see what their Android position is following their recent recruitment campaign.

The challenge for Sony is breaking into the big league and getting wide adoption as a viable alternative to Amazon, Apple and Google. BBeb is certainly past its sell by date and the Sony store is bereft of content and looks unappealing. Price could be a trump card given they have the corporate backing but tin alone isn’t the answer and they have failed so far to build a real content base and attraction. The devices as they stand aren’t going to hack it in the educational market. Some would suggest that Sony’s biggest problem is that it has an inbuilt corporate aversion to risk.

Expect it next month.

Notion Ink
On the other hand we wait with some interest for Notion Ink’s Adam tablet with its dual eInk-and-LCD display. The latest news is not good on the price which is reported to be $498 but its dual-mode display, with Wi-Fi, GPS, optional 3G, a camera that rotates 185 degrees, and its own app store sound interesting. It is expected to ship later this year, but will that be too late, or just right and will it have the mass appeal to make its mark in a crowded market.

Qualcomm
There is still much interest in the technology promised by mirsol which uses display technology that provides colour e-ink outside the WINK Corporation. The technology is called interferometric modulator display and similar to LCD uses RGB subpixels to generate colours. However it requires far less energy and is reflective, allowing for superior sunlight visibility whilst giving long availability and with refresh rates that are fast enough for video.

Kogan
Meanwhile down under Kogan Technologies has launched a 6-inch eBook ‘lookie likie’ reader into the Australian market at a price of just AUD$189. It has all the usual eInk features and wedge of give away public domain books that sit on the virtual unread shelf and is compatible with Adobe ACS4 DRM. We struggled to remember which reader it looked like but that hardly surprising with logos transferring faster than premiership footballers swop shirts and clubs!

Huawei
China looks to the West with the release of its first eReader, the Huawei T62W. Yet another lookie like eInk reader with a 6″ touch screen, WiFi, 3G connectivity, Bluetooth, and a microSDHC slot.

Foxit eSlick eReader the Latest Exit

Another ebook reader has hit the exit button today. Following the demise of iRex and the Cooler ereader, a lesser known eSlick device from Foxit became the latest casualty of ‘lookie likie’ wars and tough competitive market. Foxit will also shut down is European branch and focus work in its California headquarters and licencing its software.

At $199, the eSlick was once a cheap reader but as price wars developed and everyone headed towards that inevitable $99 price point , they just couldn’t compete.

We believe that more will follow and that by next year only a handful of players will remain and they will all find it increasingly difficult as they get squeezed by price, functionality, tablets and iPad, Android devices, etc. The consolidation will have an impact on Adobe and its ASC4 DRM platform who depended heavily on a wide spread of devices and interoperable market. It will help consumer confidence by reducing the choice and price. It should help consolidate the current epub challenges.

The winners will be those who are aligned with content revenues and can cross subsidise their programmes or those with strong nerves and deep pockets. Will believe that we will still see a big casualty or pull out? Its hard to see the likes of Sony making it without digging deep into their corporate pockets, as they are not dominating the trade market and they clearly miss the education market needs. It is also hard to see News Corporation making it with Skiff and others such as Copia may have expert advice and lots of publishing knowledge behind them but just lacks that magic that makes social networking a pull and its device offer is too spread. Barnes and Noble are a technology company so it easy to see them flipping to any device. Kobo looks toi be in a strong position but is it strong enough to compete with Amazon head to head?

So who will be the next ‘lookie likie’ to fall?