Why Amazon’s Kindle Will Eventually Win the E-Book Wars

Barnes & Noble (BKS) started the week off by cutting prices on its Nook e-book reader to $199 from $259, while also introducing a new, $149 Wi-Fi model. Not to be left behind, Amazon, which helped jump-start the e-book reader craze, decided to cut the price on its entry-level Kindle model to $189 from $259. The punch and counterpunch has prompted more than one watcher of the space to declare that an e-book price war is about to break out.

Others are musing about Amazon’s fate. All this hand-wringing is old hat for our community, because Kindle hardware or not, Amazon (AMZN) is expected to make a billion dollars from its digital book-related business this year. From where I stand, Amazon has nothing to worry about, as long as it pays attention to a few details. (And no, that doesn’t mean sharing a bigger cut of revenues with publishers.) Regardless, there are three technological reasons why the online retail giant can and will win the e-book war.

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