2. Hardware Shortfalls

The first generation of eBook hardware, like the Rocket/GemStar series, was perceived as clunky and hard to use, especially outdoors - LCD screens and sunlight don't mix. "Take an eBook outside and it's tough to read," says Claire Schooley, senior industry analyst covering education and e-learning for Forrester Research. "Often times you take a book to the beach to read. You can't do that here. Unless they do something with the readability of the screen, it will be a niche market." GemStar exited the eBook reader market in 2003, leaving Franklin Electronics and some smaller players.

The original eBook readers from Gemstar, which didn't exactly set the world on fire. (source: Gemstar)

Bogaty feels the Sony/Philips LIBRIe could change things. "It's a step in the right direction, but I don't know if that's the one that will bust things open," says Bogaty. Sony and Philips developed the LIBRIe in partnership with E Ink Corp, a firm that specializes in what it calls "electronic ink technology," which offers a paper-like display on an LCD screen, giving resolution on par with a newspaper.

The Sony LIBRIe (source: Sony)

E Ink's Electronic Paper Display (EPD) is a reflective technology, so it can be read at any angle. LCD screens are notoriously fickle when exposed to sunlight and can only be read at just the right angle. EPD, in contrast, absorbs ambient light and uses it to illuminate the page, so taking it outside into the sunlight only serves to power the machine and make it brighter. In effect, EPD uses the sun's own light to power itself.