eReader pricing games under investigation - Fox29 WFLX TV, West Palm Beach, FL-news & weather

eReader pricing games under investigation

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Posted by Rachel Leigh - email

(WFLX) - It's official: The eReader market is on fire. For Amazon, that means big bucks.

Just days after launching its newly re-designed Kindle, Amazon reports it has sold out of the hot device, and the price point is definitely a factor.

Amazon cut the price of its new base model down to $139 as more and more companies enter the market. And judging by the sales, it seems to be working.

Customers that want the popular eReader will now have to pre-order the Kindle and can expect delivery around September 4.

The long wait, however, doesn't seem to be hurting the online retailer. According to a CNET interview, Amazon estimates that it holds 70-80 percent of the eReader market. But the eReader price game could be changing.

Connecticut Attorney General Richard Blumenthal has announced an investigation into the pricing of the eBooks themselves. Blumenthal demanded a meeting with Apple and Amazon to discuss their exclusive deals with publishers. Deals that allow both companies the cheapest prices possible on the electronic books. Deals that Blumenthal appears to view as unfair to other companies.

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