This reminds me a lot of the video game console market, where newcomers compete with: the existing consoles with the established customer base, library of games and even second or third generation consoles that have the initial quirks ruled out.
B&N will have to compete with the Kindle and even Sony's readers to an extent. The biggest question is always what will B&N bring to the table that is different enough or better than its competitors to woo customers over? It seems a lot like just another iPod and iTunes clone.
I think one notable difference is the ability to go to a local store and see the device in person - this is a huge advantage and one that may help them cover a lot of ground quickly.
B&N will have to compete with the Kindle and even Sony's readers to an extent. The biggest question is always what will B&N bring to the table that is different enough or better than its competitors to woo customers over? It seems a lot like just another iPod and iTunes clone.