The only thing B&N has to do is to NOT lose money with the Nook Color. If that means zero profits for the hardware, then so be it. They can obtain profits, albeit small, in the ebook part of the equation.
If B&N can manage to produce a Nook Color at $199 without losing a single penny, then I don't see how it is going to be a loser.
Now, regarding the Nook Touch B/W, it has been put in a very difficult situation. It might be its end.
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