In Los Angeles today Microsoft will be unveiling its first tablet, and according to several tech blogs (Tech Crunch and UK's Tech Radar) this tablet will have Xbox Live video streaming embedded. Due to a partnership forged in April between MSFT and BKS it is believed the tablet is part of a $300 million joint venture between the maker of the Nook and the world's largest software company.
Based on these reports and the erosion that could pressure the Amazon Kindle Fire I believe AMZN may be under pressure over the short-term. Not just because the Nook as MSFT behind it, but because the tablet's Xbox Live streaming, making it much more than just an e-reader, the new Nook could be a media powerhouse.
One must assume this device will also run Windows 8, Microsoft's operating system that's due to launch around October time. Price point will be key, so if MSFT/BKS can introduce this tablet with Xbox Live video streaming, running Windows 8 for Under $300 (Speculation as low as $199!) then this could be a threat to AAPL dominance in the space.
Remember my friends, AAPL was able to supplant Sony (SNE) in the music space not only because they came up the fabulous iPod, but because they outspent everyone in the space 10:1 knowing the halo effect would drive business to other AAPL consumer products. MSFT certainly knows this and could be attempting the same move in tablets.
