Amazon Buys Touchscreen Company; Is Kindle Touch on the Way? has bought a New-York-based company that specializes on touchscreen technology, which many tech reporters say could be paving the way for a new Kindle with touchscreen display.

The New York Times reported that Touchco, which was developed at NYU’s Media Research Lab, will now be under the wings of Amazon’s Kindle hardware division in California.  The acquisition could possibly be a move for Amazon to come up with a new electronic reader that would rival Apple Inc’s iPad device, which will become available in March.

The reason why Amazon has tapped Touchco is because of what the company has been developing lately:  Inexpensive touchscreen displays that can handle unlimited, even simultaneous, touch inputs.

Although both parties have not stated anything about the news, a quick peek at Touchco’s official website states that they have ceased operations as of January 2010.

Source:  Reuters

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