So I was sitting last night, pondering the Kindle announcement, when I realized that the ereader price war was over and the company who started the war shot themselves in the foot.
You see, unlike most people I don’t date the beginning of the ereader price war to when B&N announced the Nook Wifi. No, I think Kobo started the war when they announced their ereader back in March. They priced it over $100 less than the other leading ereaders; basically they were selling it at cost. Now that they aren’t selling as many as they expected, they are liekly losing money on each sale.
The problem with pricing the ereader that low is that it forced everyone else to respond. I don’t think B&N would have set the Nook Wifi at $149 if the Kobo had cost more. I think B&N would have been happy to price it higher and make more per unit.
Here’s my point: Kobo aren’t an unfortunate victim of the price war; they are their own worst enemy.