I work at Amazon on the Kindle Fire. We recently announced not only the awesome e-reader I'm testing but also a $79 Kindle. $79 bucks. That's only $20 more than a first run video game like Deus Ex: Human Revolutions. It is easily in range for all kinds of Birthday and Christmas gifts.
That price point has also spurred Barnes and Noble. They just emailed me that they're now selling a $89 Nook.
What does all this mean? It means e-books are going to explode this year. And it reinforces my decision to self-publish my first few books. I'm emailing an editor in Canada today for a price quote on a copy edit of Smooth Running. Last night I sent off the first half of my commission to the artist I'm having design my cover art. (Once I get it, I'll post it up on the Smooth Running tab above).
Seriously, this is the golden moment for aspiring authors and established ones alike. Get your stuff up on Amazon and Kindle (and Kobo, I suppose). People are and will continue to be hungry for good quality content.