Baker said despite the glowing reviews by new owners, the market for e-readers is still relatively small. The previous two Kindle devices have sold between 500,000 and 750,000, "not exactly a barn burner," he said. He counts the total available U.S. market of customers who might buy a Kindle at 12 million, well below the possible market of 200 million for electronic games.

"Can that change? Sure, if they get every major textbook maker to provide textbooks for the DX and can get universities to subsidize the device," Baker said. "The same goes for if they get magazine and newspaper publishers on the DX."