Barnes & Noble and Amazon are in a disagreement due to lowered prices on e-reader devices. Barnes & Noble was the first to drop the Nook 3G price from $259 to $199 as well as add a WiFi-only device for sale at just $149. This led Amazon to drop is price from $259 to $189; that’s $10 less than what Barnes & Noble offers.

Store feud aside, the underlying reason for this price controversy is the iPad, which starts at $499. E-readers such as the Kindle are significantly less expensive than the iPad. However, Barnes & Noble and Amazon make around 30% commission off of each e-reader sale which begs to ask the question…how inexpensive could an e-reader really be sold for?

Having sold more than 3 million copies to date, Apple’s new product has been a tremendous success. Millions more are predicted to be sold as we near the end of 2010. This creates quite a competion for the e-reader.

All of this may remind you of the Great Video Game Crash of 1983 which marked the end of the first game console craze. Could the iPad’s sucess be the start of the e-reader crash of 2011?

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