An E-Reader Bubble?

I really do think it's only a matter of time before we reach a stage when reading devices will proliferate, not necessarily resulting in the complete disappearance of paper products--like books and magazines--and after all, and as a comparison, vinyl is still around, but to become a viable option for readers. Given that, here's an interesting article from Daily Finance, E-Readers: Can The Kindle Avoid Repeating The Video Game Crash of '83? It postulates that what happened to video game consoles in 1983 could happen soon to E-Readers. An excerpt:

Consumers aren't lacking in choice for the e-reading gadget of their dreams, and more options should be on the market this time next year: Plastic Logic's business-minded Que, color e-readers like the Pixel Q1, a long-rumored Apple (AAPL) Tablet, and new Kindles (and textbook-oriented Kindle DXs).

But is the e-reader's time really now? Or will consumers make a choice that they'll bitterly regret 12 months from now, making the entire e-reader market disappear?

The Wall Street Journal cautioned that e-readers may not be enjoying an iPod moment but an "eight-track moment." It's an appropriate comparison, but savvy shoppers should heed even more the Great Video Game Crash of 1983. The parallels between 1983 and now are striking: deep recession, high unemployment, the culminations of technological revolutions -- personal computers then, smartphones and netbooks now.

And speaking of The Wall Street Journal, here's an excerpt from their article, E-Readers: They're Hot Now, But The Story Isn't Over:

Books are having their iPod moment this holiday season. But buyer beware: It could also turn out to be an eight-track moment.

While e-reading devices were once considered a hobby for early adopters, Justin Timberlake is now pitching one on prime-time TV commercials for Sony Corp. Meanwhile, Amazon.com Inc.'s Kindle e-reading device has become its top-selling product of any kind. Forrester Research estimates 900,000 e-readers will sell in the U.S. in November and December.

But e-reader buyers may be sinking cash into a technology that could become obsolete. While the shiny glass-and-metal reading gadgets offer some whiz-bang features like wirelessly downloading thousands of books, many also restrict the book-reading experience in ways that trusty paperbacks haven't, such as limiting lending to a friend. E-reader technology is changing fast, and manufacturers are aiming to address the devices' drawbacks.

"If you have the disposable income and love technology—not books—you should get a dedicated e-reader," says Bob LiVolsi, the founder of BooksOnBoard, the largest independent e-book store. But other people might be better-off repurposing an old laptop or spending $300 on a cheap laptop known as a netbook to use for reading. "It will give you a lot more functionality, and better leverages the family income," he says.

But e-reader buyers may be sinking cash into a technology that could become obsolete. While the shiny glass-and-metal reading gadgets offer some whiz-bang features like wirelessly downloading thousands of books, many also restrict the book-reading experience in ways that trusty paperbacks haven't, such as limiting lending to a friend. E-reader technology is changing fast, and manufacturers are aiming to address the devices' drawbacks.

"If you have the disposable income and love technology—not books—you should get a dedicated e-reader," says Bob LiVolsi, the founder of BooksOnBoard, the largest independent e-book store. But other people might be better-off repurposing an old laptop or spending $300 on a cheap laptop known as a netbook to use for reading. "It will give you a lot more functionality, and better leverages the family income," he says.