Choosing Between Kindle and Nook Color

If you're in the market for an e-reader, and you're not sure between the two main competitors, Amazon's Kindle device and Barnes & Noble's Nook Color reading tablet, here's a few questions to ask.  Note that Kindle refers to both the device and to the ebook format that Amazon uses; Barnes & Noble calls their device Nook Color and refers to their ebook format as Nook Books.

1) What's my budget?

The Kindle WiFi is $139.  The Kindle WiFi + 3G (adds a 3G radio which gives you very basic internet access via a cell connection for checking email or downloading ebooks) is $189.  The Nook Color is $249.  You can buy discounted gift cards for Barnes & Noble from various websites in order to knock another 4-9% off the price.  Currently, no discounts are available for the Kindle, and buying from a third-party is not ideal, since there is no way of verifying the seller is legitimate.  Amazon has the power to deactivate your device if the original owner tells them the Kindle was lost or stolen.

2) Do I want something that looks like paper, or do I prefer a touchscreen like an iPod or cell phone?

The Kindle does not have a touchscreen.  Screens are navigated using a four-way toggle button with a select button in the middle.  But, the screen looks a lot like paper and doesn't have a backlight which causes eyestrain for some people after reading for long periods of time.  On the other hand, the Nook Color has a capacitive touchscreen which is very responsive and allows for quick highlights and notes, but is backlit like a computer screen.

3) Do I want to use my e-reader outside most of the time?  Or, a related question: Do I travel a lot?

Pick Kindle - nothing else is as clear and readable in sunlight - if you're reading outside a lot.  If you're traveling, then it depends on whether you want battery life measured in weeks (Kindle) or in days (Nook Color), in addition to whether you read mostly outside, where Kindle has the advantage, or inside, where Nook Color will typically be more readable.Also, the Nook Color weighs almost twice as much as the Kindle.

4) Do I want lots of free ebooks or the biggest selection of ebooks, magazines, and newspapers?

Amazon/Kindle has the biggest selection of ebooks/magazines/newspapers.  Many free books are offered on a weekly basis, though B&N will often offer the same books.  Amazon also typically has the cheapest prices, but since the advent of something called the Agency model, prices on certain books are fixed so Barnes & Noble will probably have the same price on bestsellers.  An interesting feature: Barnes & Noble will let you archive old issues of magazines and possibly newspapers; Amazon deletes the oldest issue once you have 6-7 issues.

5) Do I want to download apps? 

Kindle has a few (5-10) game type apps; Nook Color will shortly have a limited selection of 'reading-related' apps.  Many more are also available if you 'root' or hack the Nook Color to allow installing other Android apps,  including the Kindle app which lets you read ebooks from Amazon.  The rooting process is fairly easy but also runs the risk of voiding your warranty or messing up your settings.  Still, you do get the flexibility of reading ebooks from Amazon and Barnes & Noble on the same device.

6) Miscellaneous questions: Do I care about page numbers?  Do I want to download library books?

Page numbers are built-in to the Nook Color ebooks; they are a planned future feature for the Kindle, but not available generally yet.  Library books are accessible on the Nook Color, but you have to have a library which supports ebook downloads, then register your card, locate the book on their website, download it to your computer, and finally copy it over to the Nook Color using Adobe's Digital Editions software.  The selection of books is limited, and popular books have long waiting lists.  Kindle does not support library books at this time.

A final note:

Barnes & Noble also sells the Nook Wifi (not to be confused with the Nook Color).  This is an e-ink device like Amazon's Kindle but uses older technology, so the background is not as white and the text is not as dark (lower contrast).  The navigation is also not as intuitive.  I would avoid it, unless you can find it under $100, as a new model will likely be released in the next few months using the latest e-paper screen.