• by Erik Sass  @eriksass1, August 11, 2010

The e-reader market is changing so rapidly that even e-reader manufacturers can't keep up. This week, Plastic Logic announced it is canceling the Que e-reader, which was scheduled to debut this summer. Instead, it will develop a new and more up-to-date device, the ProReader, which is able to compete in a market currently dominated by Apple's cutting-edge iPad.

Plastic Logic CEO Richard Archuleta blamed a "dramatically changed" market for production delays, but said the company would "take the necessary time needed to re-enter the market as we refocus, redesign and retool for our next-generation ProReader product."

When Que was first previewed in January 2010, the flexible gray-scale device was considered an innovative contender in a market still taking shape.

Measuring 10.7 inches on the diagonal and just one-third of an inch thick, it was considerably larger than its main competitor, Amazon's Kindle, and weighed only a few ounces more.

But the launch of Apple's iPad tablet computer in April of this year completely upended the market, raising the bar with more Internet connectivity and a color display, among other features.

IN the meantime, Amazon has introduced new, improved versions of the Kindle at lower prices -- effectively segmenting the market for e-readers by price with cheaper alternatives to the $499 iPad.

In this environment, the pricey Que (ranging from $649-$799) was going to be the odd man out, costing more than the iPad but offering fewer eye-catching features.