I got an email a few minutes ago from a contact with Borders. She’s upset with me over my interpretation of today’s events, and she might have a point. She thinks I jumped to the wrong conclusion about the meaning of today’s Borders-Kobo news, and more or less that I’m digging the company’s grave too soon.
Perhaps I did start digging the grave too soon. But Borders clearly have the odds stacked against them. They’re covered in debt, in a shrinking industry, and struggling through a recession. What are the odds they’ll pull through?
On the other hand, look at Kobo. Last year Kobo instigated an ereader price ware which saw Amazon and B&N drop their prices by over 25%. I thought at the time that Kobo had priced themselves out of the market. Yet they’re still here, and they even announced a new ereader last week.
And then there’s the simple fact that “company survives” isn’t nearly as interesting of a story. Doom and gloom will always sell better.
What do you think?