This is game changing stuff, IMO.

http://www.thebookseller.com/news/amazoncom-hires-larry-kirshbaum.html

They publish, they sell, they distribute. Big, big development.

Seems to be stirring up a storm (in a teacup?):

http://jakonrath.blogspot.com/2011/05/indie-bookstores-boycott-konrath.html

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Although this is the guy who's been touting self-publishing:

"Incredibly, I now have forty ebooks available. Thirty-two are self-pubbed, eight are with publishers."

Just hooking into this to see what people say. I'm not sure I understand what this means.
Susiex

Susie, I'm no expert, but this is what I think it means:
It means that Amazon, with their control of the online bookselling market, their huge knowledge of e-book technology, and their huge ability to distribute books and reach customers in their own homes, are now beginning to publish books also. It means that they will be in competition with conventional publishers who depend on Amazon for a significant ammount of their sales. Remember when Amazon tried to bully Headline by removing their books from sale? Can you imagine what it's like for a publisher if their biggest distributor and the company who can reach all their customers (the average punter doesn't notice who publishes their book, but does know where they bought it from) are competing with them by publishing books also? If Amazon publish books, they can give their own books storefront space - pushing books by conventional publishers into the shadows (if you can't find it online, you can't buy it) and into bricks and mortar bookselling, which is still, despite the good news form Waterstone's, facing a crisis.
I think it is by far the most significant thing that has happened in a long time to the bookselling world.

It's significant, but difficult to tell how it'll pan out.
Best case scenario it means more publishing opportunities for writers - especailly as they're looking for Literary Ficiton which is notoriously difficult to get published because of the low readerships.
Worst case scenario is they cherry pick bestselling authors from other publishers.
I don't think they should understimate readers. Readers will find the books they like even if Amazon tries to push it's own titles onto them.

Thanks, Leila, for explaining that so succinctly. Searching in the distant reaches of my mind, isn't there some law about huge conglomerates having too much of a share of any market, or am I dreaming that? Wouldn't this put Amazon into that kind of a position, especially if 'real' publishers go under?
I'm also really surprised at the genres they're seeking. Literary fiction? What's that about?
And just how is this publishing arm sourcing its books? Via agents? Or are people approaching them direct?
Good point, Naomi, about the cherry-picking.
Susiex

Right, yes indeed Susie. Some commentators (here: http://www.thebookseller.com/news/amazon-publishing-could-have-dampening-effect%E2%80%94bea.html )have raised exactly that point.
It's difficult to know how it will affect authors. At the moment it looks as if it is conventional publishers rather than authors who should be sweating...
To an extent it will surely depend on how high the literary quality and commercial potential of Amazon-published books turns out to be.

And I wonder what kind of deal Amazon will give authors? Presumably a very royalty-based deal, given that they can 'guarantee' lots of sales?
Intriguing, and bit worrying.
Susiex