E-readers are going to get cheaper. As the market becomes more mature, e-reader makers will pick and choose their spots to compete more effectively in this soon-to-be very crowded market. Not every company would want to go against Apple. Besides, cheap e-readers will always be in demand as not everyone wants all the bells and whistles that the iPad and other similar devices have to offer. Kobo Reader is one of those affordable e-readers that is designed to compete with the top dogs by offering a recession-friendly price. It costs $100 less than Amazon Kindle and takes advantage of e-ink technology (unlike Apple iPad).
Kobo E-reader does not intend to beat Amazon Kindle or the iPad in the features department. It can read e-books. But that is about it. It does not have 3G like Nook or Kindle. It also does not allow you to download books from Amazon or B&N. On a positive note, it does support ePub and PDF. So as long as you can get your hands on e-books in those formats, you should be fine (comparison).
Can Kobo Reader succeed? It’s hard to say. The device would be more formidable if it came with support for 3G. It’s also not clear whether this device can survive a major price drop by Amazon and B&N. Kobo Reader is promising, but the jury is still out on the device and its future.