eBook Price Wars?

Are the gloves coming off and are we seeing just a pricing skirmish or a battle of wills and pricing nerves between Amazon.com and Barnes and Noble?
According to TechFlash Barnes & Noble, is now offering ebook versions of New York Times bestsellers for $9.95. This obviously is a fraction under than Amazon's standard $9.99 ebooks price for same books.
So is $9.95 better than $9.99? What is probably more important is the clear message it is sending to consumers and there is only one direction many go from here.

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