The PRS-700 also has an annotation and notes feature. With the included stylus--or your finger--you can highlight words and add annotations via a virtual keyboard that you tap on. The Kindle offers this feature via a Blackberry-style hard keyboard, but some argue that the Kindle's keyboard just isn't all that useful, takes up too much real estate, and elongates that device unnecessarily. The virtual touch keyboard seems like a good compromise, especially given that it'll be used a lot less than one on a dedicated e-mailing device.
It's worth noting that the PRS-700's touch screen isn't as touch-sensitive as the screen on the iPhone and several other new cell phones. How does this affect usage? Well, you've got to take extra care when highlighting a word or phrase with the stylus; it's easy to undershoot or overshoot the word. And until you get the hang of swiping, you may end up swiping more than once to turn a page. The key is to press more firmly on the screen than you're used to (if you've ever had a device that has a touch screen).
We said it before with the PRS-505 and we'll say it again for this model: we were a little disappointed that the unit doesn't ship with an AC adapter (it's an optional accessory that costs $30); instead, the default charging option is limited to connecting the Reader to your PC with the included USB cable. If you happen to own a Sony PSP, the charger from that device works with the Reader as well. It's also worth noting that we couldn't charge the Reader with a standard USB cable connected to a 5V power adapter, such as the standard iPod wall charger. The Reader only charged via USB when we used the cable that came with the unit and connected it to the USB port on a PC. Go figure.
On the content side, Sony is making an effort to catch up with Amazon in terms of the number of books it has available. As of this writing, it was offering abut 60,000 titles in its e-book store and that number should approach 100,000 by early next year. Sony has revamped the e-book store for the better and the device ships with eBook Library 2.5 PC software, which is more user friendly than previous versions, but it's not as convenient as just downloading books wirelessly to the unit, as you can with the Kindle (so long as you can get a signal).
Downloading a purchased book is a two-step process. You launch the software, connect the Reader via USB, and browse the e-book store, which in some ways is better organized and superior to the e-book store built into the Kindle. After you purchase a title, it goes into a special folder; you then drag the title onto the icon for the device and it transfers to it. All in all, it's pretty simple. And adding nonencrypted files is even easier: you just drag them over to the "book" folder on the PRS-700, which appears on your computer as an external drive.
In fact, one of the Reader's strengths is its ability to read other formats besides encrypted Sony e-books from the store. The Reader is capable of displaying text, RTF, Word, BBeB Book files, and EPUB files, as well as PDFs. Previously, you couldn't zoom in on your PDF files, but now you can. The zooming isn't quite as fast as you'd expect from a computer (there's a delay of a couple seconds), but it helps that the PRS-700 has the aforementioned faster processor, which speeds up everything, including page turns. It's still not super zippy, but it's definitely a noticeable bump up from the PRS-505 and Kindle.
As noted, this model doubles the amount of internal memory from 128MB to 256MB, which allows you to store around 300 books. Another way to access content is to transfer it to an SD or Memory Stick Duo card and slip it in the Reader's expansion slot. However, you can only download encrypted Sony eBooks using the desktop software; likewise, only the software can be used to organize the titles into customized collections. So, if you're a Mac user, the device probably isn't worth buying.
On the image side, you can view JPEG, GIF, and PNG files. The pictures are monochromatic--and they look like some really detailed Etch-a-Sketch work--but the effect is kind of cool, and you can use the reader to show off your family album if you're so inclined. As for audio, the Reader plays back MP3 and AAC files; there's no built-in speaker, however, so you will need to plug a pair of headphones into the headphone jack to hear anything. Not surprisingly, Sony doesn't support the Amazon-owned Audible file format, so fans of audio books will need to fall back to their iPod, MP3 player, or the Kindle. The good news is you can read a book and listen to MP3 songs at the same time. Sony says that with a fully charged battery, you can go several days of reading without having to recharge, but audio playback will sap that accordingly.
Sony continues to run a promotion where you get 100 eBook Classics with your purchase of the Reader. These classics, which normally cost $1.99 each, include everything from Hamlet to Moby Dick and Great Expectations. Most best sellers cost around $10, which is too high in our book, but the publishers, not Sony, control the pricing to a large degree.
In conclusion, I'd have to say that this was a tough review to do. Sony has made a lot of good choices with the PRS-700; it's faster, has a cleaner, easier-to-use interface, and the touch screen definitely simplifies navigation and makes the device a relative pleasure to use. But it's hard to ignore that for the prime function of the product--reading--the screen on both the PRS-505 and the Kindle are better. We're not sure what Sony can do to fix that, but until it does, the Kindle remains top dog in the digital reader realm.