Perhaps the biggest innovation, on the software side, can be seen while turning pages. On the Kindle, when you flip a page, the screen goes dark before the new page appears, sometimes with a lingering image of the last page -- an effect known as "ghosting." Barnes & Noble executives say the new Nook improves upon that experience with 80% less flashing.
The other big innovation can be seen in battery life. The Simple Touch Reader (pictured with Barnes & Noble CEO William Lynch) will run for two months on a single charge, compared to less than a month for the Kindle. Otherwise, the new device runs on Android 2.1 and uses the E-Ink Pearl display.
Finally, there is a social media layer to the Nook. In April, Barnes & Noble introduced an app called Nook Friends that lets you trade recommendations with your friends on Facebook and off. Jamie Iannone, Barnes & Noble's president of digital products, says he believes the company's recommendation algorithm, which combines reviews from friends and experts, is a big differentiator. "It helps you figure out what you're going to read next," Iannone says.