They don't need to compete on price. For an extra $50, you get:
1. Double the RAM (1gb vs 512mb)
2. Double the storage (16gb vs 8gb)
* 3. Bluetooth - edit - it appears that the Kindle Fire DOES have Bluetooth, just like the original Nook Color. Hopefully it will be enabled with custom ROM's.
4. Micro SD card reader
What you don't get:
1. The cloud assisted web browser
2. Free cloud storage for all of your purchases
3. Unlimited on demand movies through an optional Amazon Prime membership
But for those of you who will be rooting them and installing CM7 or CM9, there is no comparison. As far as I'm concerned, the Fire is DOA.
The original Nook Color is now $199. For $50 more, you get the Nook Tablet with double the RAM, double the storage and a dual core CPU. Why would anyone choose the Nook Color when the Nook Tablet offers so much more?
Oh, I don't disagree Bill. My comment was only in response to previous price speculation. I think it's a pretty nice deal. For me the competition may be with the Lenovo A1 Granted the A1 is single core, but it also has 16GB, and right now for only $199. Only 512 MB RAM, but it does have front and back cams and offline GPS. An interesting feature set which is geared to a different audience, but given the low price of it and the Tablet IMO there may be some thinking before choosing.