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Grimes said:

If you don't own a kindle or ever wanted a kindle, this device probably isn't for you. A color kindle that can play video, music, apps and browse the web is something I think a lot of people would be interested in.

Well I think as an ebook reader the Kindle is superior.  Battery life and eink basically.  For reading magazines and so on the iPad seems great though.

 

OT:  Yes I think it is definitely a gaming option, obviously for DS like games and even for more traditional types seeing how chinatown wars plays on ipod touch with no buttons.