Color e-paper is being tested by some big name companies

It will be very interesting to see the first wave of products that use the new color e-paper. I would say Amazon or Kobo stand the best chance to be first to the market, simply because they have large engineering divisions and can afford to take the time to get a product right. How nice would it be to browse the Kindle or Kobo store and have all of the cover art in full and vibrant colors? The GoodReads experience on the Kindle would be superb, you would actually be able to see the avatar photos people use, instead of them just being in black and white. Non-fiction books would benefit from this, you would actually be able to see the insert photos, as they were intended.
— Read on goodereader.com/blog/e-paper/color-e-paper-is-being-tested-by-some-big-name-companies