Microsoft Nook Deal: Winners & Losers (Update 1)

"If Microsoft took the Nook off Android right now and put it on Windows, they could potentially lose market share. Hopefully Microsoft is not that dumb," said one hedge fund analyst, who declined to be named. The analyst believes that Microsoft may eventually change the NOOK over to Windows, but probably not before Christmas 2013, given the lead time in development.

This may give an added boost to the excitement of Windows 8 as a viable mobile platform. Investors have bid up Microsoft shares 23.2% year-to-date, thanks in large part to the excitement of Windows 8, due later this year.

Amazon: Loser

This announcement may be a bit of a blow to Amazon(AMZN) , as it provides a definitive third player in the tablet space, at the same price point as the Kindle Fire.

Apple's iPad competes at a different price point, starting at $499, yet offers a much different feature set. The NOOK and the Kindle Fire are both priced at $199 and offer roughly the same feature sets, including 7-inch screens, and significant access to content, such as books, DVDs and magazines.