We will likely learn more on Thursday when Barnes & Noble is set to report their latest quarterly earnings report. The New York Times reports that the company has already warned that losses in the Nook Division “will be greater than the year before and that the unit’s revenue for all of fiscal 2013 would be far below projections it gave of $3 billion.”
So what does the future hold for the Nook?
A person familiar with Barnes & Nobles’s strategy acknowledged that this quarter, which includes holiday sales, has caused executives to realize the company must move away from its program to engineer and build its own devices and focus more on licensing its content to other device makers.
“They are not completely getting out of the hardware business, but they are going to lean a lot more on the comprehensive digital catalog of content,” said this person, who asked not to be identified discussing corporate strategy.
If Barnes & Noble does indeed pull back from building tablets, it would be a 180-degree shift for a company that as late as last year was promoting the Nook as its future. “Had we not launched devices and spent the money we invested in the Nook, investors and analysts would have said, ’Barnes & Noble is crazy, and they’re going to go away,’ ” William Lynch, the company’s chief executive, said in an interview last January.
This is not the only Barnes & Noble news today.
B&N Chairman, Leonard Riggio, filed his intention to purchase the retail portion of the Barnes & Noble business.