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Amazon drops Kindle to $189, following Barnes and Noble ‘nook’ price cut to compete with Borders’ sold out Kobo

Late in 2009, U.S. book retailer Barnes and Noble launched its first e-reader, the Android-based “nook” — a 6″ e-ink display and a 3.5″ LCD touchscreen for content navigation, giving it an instantly recognizable shape in an e-reader market packed with selfsame competitors. When it hit retail, there was only a single nook model which included AT&T 3G wireless that cost $259, the exact same price as the Kindle 2 from Amazon.

With Borders, began selling a much cheaper e-reader called “Kobo,” which during its first pre-order run, completely sold out.

Now, Barnes and Noble announced that it now sells a Wi-Fi only version of the nook, which coincidentally costs exactly the same as the Kobo, $149.99. Additionally, the cost of 3G-enabled nook has been knocked down to $199, and the device’s v1.4 software update gives nook owners free access to all of AT&T’s Wi-Fi hotspots.

Alos, Amazon said Monday the Kindle now costs $189, down $70 from its previous price of $259. It can wirelessly download books and has a gray-and-black e-ink screen.

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