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An Update to My Last Post: On the New Amazon Fire

In a rare moment of congruence, not 24 hours passed from me putting up my previous post on the Barnes & Noble nook color and some apps that they should release and the announcement from Amazon of their next generation of Kindles.  Coincidence?  Most likely.  But I’ll just choose to believe my little ramblings forced the hand of one of the biggest corporations in the world.  (If you’re going to delude yourself, go big).

The new Kindle Touch are aimed at competing with B&N’s nook Touch and they’re competitively priced to do so ($99 for the Kindle versus $139 for the nook).  I would expect a slash in prices from B&N though just to stay ahead in the game. 

But the big news was the revelation of the all-new Amazon Kindle Fire.  A touchscreen, full-color tablet – not an e-reader only, but a full and complete tablet.  The Kindle Fire will not just have e-books, full-color magazines and full-color comic books (didn’t I say that?) but it will take full advantage of Amazon’s electronic store to give customers movies, TV shows and a full complement of apps like Angry Birds and Plant & Zombies.

In short, Amazon isn’t coming after just the nook color.  They’re coming after the Android tablets like the Galaxy Tab.  They’re coming after the iPad 2. 

And between attaching their brand name – which millions are comfortable with already — with a price of just $199, Amazon has a pretty good chance at coming out of the Christmas 2011 season as the big winner. 

So what does Barnes & Noble do now?  Their options are simple:

1) Stay as they are.  Keep the nook color as an e-reader only but take advantage of their Android connection and give more options (like I said the other day).  It differentiates the nook color from the Kindle Fire.  However, given that they’re asking for $50 more per nook color, it’s likely they will lose that fight with this tactic.  Even dropping the price to $199 wouldn’t be enough.

2) Root the nook color officially for their customers and turn it into a full-fledged tablet.  If they’re going to do this, though, they’re going to have to unite commercially with Android Market to offer up movies, TV shows, apps and games.  It’s the only way they can have the amount of online content to compete with the catalogues of Amazon and Apple. 

Either way, it just got really intriguing for owners of the iPad, Kindle and nook.

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