Microsoft has teamed up with Barnes and Noble to challenge Amazon and Apple in the rapidly expanding e-book market.

The move will see a Nook application on the Windows 8 platform including Microsoft’s tablet device due later this year and is now likely to take a prime location on the new Windows 8 tile screen.

The Nook currently makes up for about 25% of the e-reader market and with e-books estimated to already account for almost 20% of the market this could be a very shrewd move with huge potential and new areas to explore in the future.