Many people have rushed to judgment about this without adequately evaluating it. (Just for instance: "Penguin" isn't initiating self publishing services; the self-pub services are part of Book Country, which is owned by Penguin but is a separate entity with its own staff. That separation is evident on both companies' websites--you won't see self-pub services touted on the main Penguin website; you won't see Authonomy-style "farm team for big daddy publisher" hype on the Book Country website.)
I'm also mystified at all the people who are calling it a scam. How on earth is it a scam? Sure, there are fees. For anyone who hasn't checked, that's a pretty common feature of self-publishing services. Sure, Book Country keeps a chunk of the author's income--but so does just about every other middleman self-pub service out there--the whole basis of digital self-publishing services is charging limited fees upfront and recouping costs at the point of sale.
Book Country's self-pub fees are hardly "hidden." They are fully disclosed on the website; you don't even have to click around very much to find them. Plus, Book Country (unlike Thomas Nelson, Harlequin, etc.) isn't contracting its service out to the problematic Author Solutions; and it also isn't larding its service with misleading hype about "indie" publishing and following your dream and fulfilling your deep inner writing soul. What it IS doing is providing straightforward, relatively inexpensive, no-frills self-publishing services for those members of the Book Country community who choose to use them.
It's not for everyone. And sure, you can Kindle yourself for free--but not everyone wants to DIY, and there's no shame in that (contrary to what Konrath and his evangelizing ilk would like you all to believe). I am not endorsing Book Country's services, or advocating that anyone use them. I'm just boggled at the over-the-top rhetoric that's being hurled at this, and at the failure of many people to actually investigate the services before jumping on the "it's a scam!" bandwagon.
- Victoria