The price war comes after Amazon has been pricing many of their ebooks for the Kindle at $9.99, again a loss leader, this one designed to get folks to buy Kindles.
Thomas Nelson is actually thinking of taking some steps to combat this worrisome trend. I hope other publishers join them, because if not, consumers are going to expect to buy hardcover books for less than $10, authors are going to make only pennies per book, and I’m going to have to go back to a day job. [Full disclosure: Nelson is one of my publishers.]
Some of his suggestions including delaying the release of e-books, and establishing a minimum price for new books. You can read his blog post here.