Kensai7 writes with news that E Ink, the company who builds the displays used in Amazon's Kindle, Barnes and Noble's Nook, and Sony's Reader, has launched a color version of their e-reader screens. It will first be used by a Chinese company called Hanvon Technology. Other companies will be watching and evaluating how well it works before integrating it into their own designs. Quoting: "Unlike an LCD screen, the colors are muted, as if one were looking at a faded color photograph. In addition, E Ink cannot handle full-motion video. At best, it can show simple animations. These are reasons Amazon, Sony and the other major e-reader makers are not yet embracing it. Amazon says it will offer color E Ink when it is ready; the company sees color as useful in cookbooks and children’s books, and it offers these books in color through its Kindle application for LCD devices. Sony is also taking a wait-and-see approach."