Self-assured Destruction Dept: I don't know what Gemstar thinks they're doing. I really don't. More information has hit the fan since my last column on Gemstar, and it's not good, at least for ebook buyers. RocketWriter is still dead (until they can find a way to ressurect it without opening the door to those scurvy pirates), and prices are still high all over. The REB models will go on sale around Thanksgiving, and the only way to get content is Gemstar's dialup service. You can still buy ebooks online, but you have to actually download them from Gemstar. I'm sure both Gemstar and Big Publishing think this is great. It's a closed system; the only way to get content into the device is Gemstar's server and the only way to get it out again is the screen. It's as secure as human readable media can be. But with the REB still costing ~$300 and ebooks going for hardcover prices, they're limiting their market to hardcore bibliophiles who probably prefer the asthetics of paper anyway. Gemstart CEO Yuen has mentioned that he'd like to reduce the price of the REB 1100 to around $100 in a year or so, but only if the market proves there's a demand. At the current prices, he's practically guaranteed not to see that. He will probably get the bestselling content he wants since they're only asking for a 90-day exclusive on distribution, but who's going to buy? This is the best catch-22 business model I've seen in a long, long time.

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