Is Kindle Fire like the Wii of Game Systems, simpler and cheaper? with a bit of help from the Cloud

I've placed my order for a Kindle Fire.  Some iPad users will make the point the Fire has no 3G, only 8GB of memory, no camera, and no microphone. But, who can argue with a $199 price point?  This is like the Xbox/Playstation vs. Wii where a simpler cheaper device enables a lower price point.

Some apps are mentioned as being evangelized for the platform.

Amazon will go through its Appstore for Android, which has more than 15,000 apps, and filter out those apps that won’t work on the Kindle Fire for users who visit the store from a Kindle Fire. The company is approaching app developers to build new apps and optimize existing titles for the Kindle Fire, but it’s not putting out its own SDK. Instead it will encourage them to use Google’s existing tools. Amazon has started talks with Twitter, Facebook, Pandora and Netflix to optimize apps for Kindle Fire, but it’s too early to say what will happen.

But, I wouldn't hold your breath for Netflix optimized for the Kindle Fire.

What the Kindle Fire Silk browser does is enable Amazon to conduct analytics on the browsing experience that few can see.

Finally, Silk leverages the collaborative filtering techniques and machine learning algorithms Amazon has built over the last 15 years to power features such as "customers who bought this also bought..." As Silk serves up millions of page views every day, it learns more about the individual sites it renders and where users go next. By observing the aggregate traffic patterns on various web sites, it refines its heuristics, allowing for accurate predictions of the next page request. For example, Silk might observe that 85 percent of visitors to a leading news site next click on that site's top headline. With that knowledge, EC2 and Silk together make intelligent decisions about pre-pushing content to the Kindle Fire. As a result, the next page a Kindle Fire customer is likely to visit will already be available locally in the device cache, enabling instant rendering to the screen.

And, there is the cloud.

With Kindle Fire, you have instant access to all the content, free storage in the Amazon Cloud, the convenience of Amazon Whispersync, our revolutionary cloud-accelerated web browser, the speed and power of a state-of-the-art dual-core processor, a vibrant touch display with 16 million colors in high resolution, and a light 14.6 ounce design that's easy to hold with one hand - all for only $199. We're offering premium products, and we're doing it at non-premium prices."

Can you imagine if Netflix shipped the Kindle Fire.  We'll charge you for your cloud usage, separate your shopping from your video watching, and Games are on a separate website you need to subscribe to.

Bundling services in interesting ways is what customers want.  Amazon wants the data that allows them to create new services.