Microsoft denies e-reader rumours

Posted by Jennifer Lush on October 9, 2009 at 10:28 AM

Microsoft has denied rumours that it is developing its own e-reader to rival Amazon's Kindle, reports the Guardian, with chief executive Steve Ballmer saying: "We have a device for reading. It's the most popular device in the world. It's the PC."

Ballmer said that given the company already supplies the software that runs this device (nine out of ten of the world's PCs use Microsoft's Windows operating system), and also manufactures 'Microsoft Reader', a free, downloadable software application for digital reading- it has no need to invest in creating its own e-reading hardware.

"I would love to see companies like Amazon and others bring their books to the PC," Ballmer told a reporter for the Reuters news agency. "Hopefully we can get that to happen with Barnes & Noble or Amazon or somebody. But no, we are not interested in e-readers ourselves.

The clarification comes amidst a growing buzz surrounding e-readers, with speculation over which companies will enter the market. Whispers that Apple are working on a device have only contributed to the hype, with reports that the reader will double as a portable tablet and e-reader as well as have a full colour screen.

Technology analyst Rob Enderle of Silicon Valley's Enderle Group told AFP that an Apple tablet computer "could be a segment killer," he said, a "Swiss Army knife of products."

"So far there hasn't been a good e-book reader that uses an LCD display," he said. "You lose too much resolution. What makes an e-book reader great is that it reads just like paper and it has a long battery life.

The battery-draining LCD screen is perhaps why Apple have held off introducing their own device: "They just weren't able to get it done," says Enderle, "[But] I do expect were going to see it in the first half of next year."

The next few months are expected to be big for e-readers with Forrester research revealing on Tuesday that it forecasts sales to reach 3 million before the end of the year. Growing competition between manufacturers and dropping prices (Amazon reduced the price of the Kindle 2 by $40) means consumers are showing greater interest in the device and it is expected to be a popular Christmas gift choice this year.

Recognising the potential revenue source for newspapers, some publications have started creating their own e-papers and bundling them together with e-reading hardware. NRC Handelsblad, a Dutch daily newspaper, launched it's e-paper in early 2008 and offers it's readers a combined subscription/e-reader package. This sort of package encourages readers to explore the technology, whilst simultaneously securing digital subscribtions.

NRC Handelsblads' approach toward e-readers is more pro-active than most publications, however, it is certain that the way in which the technology develops over the next few years will be key to news publishers as they attempt to find the best way to monetize digital content.

Source : Guardian, AFP, Christian Science Monitor