image Two new Kindles are on the way if CrunchGear is right:

—"The first is an updated version with the same sized screen, a smaller form factor, and an improved interface. The source told us that Amazon has ‘skipped three or four generations,’ comparing the old Kindle to the 1st gen iPod and the new version to something like the sexy iPod Mini." It’s to show up "around October 2008."

—"The second new model, which is shaped like an 8 1/2 x 11-inch piece of paper, is considerably bigger than the current model and should be available next year."

The Kindle 2.0s will come in a variety of colors. Drawing is CrunchGear’s.

The format issue

No word from CrunchGear on whether the new Kindles will render ePub natively, but ideally Amazon will learn from what’s happening on the iPhone front. Dream on, huh? But you never know. Recently Amazon has been asking publishers to do formatting that would make things a bit more ePublike.

Meanwhile keep in mind I’m just repeating what CrunchGear said. I vaguely recall Jeff Bezos giving us the impression that 2.0 wouldn’t be with us very soon. So now he does the opposite?

Angry current owners if rumor’s true?

If Jeff has misled us, perhaps  it’s because of people like Adam, a CrunchGear commenter, who says: "Are you serious? I just bought one. I think I’ll return it, as I bet the new interface will be much, much improved. I’m a regular early adopter, and used to accepting the reality of improved models, but this is just too expensive of a device to be screwed over on, in my opinion!"

So what do you think? Does the CrunchGear report seem true? If so, will Amazon significantly lower existing Kindle prices? And just how low must the prices of old Kindles drop before you’ll buy one? Or are you about to, already, regardless of the above rumors?

Related: Google News roundup.