A price war is heating up in the electronic reader market, as Amazon cut the price of its Kindle e-reader below $200 today, just after Barnes & Noble did the same with its competing Nook device. The Kindle's price was slashed by $70 to $189, just a few hours after the Nook price tag shrank by $60 to $199. The popularity of the iPad, along with a number of other tablet computers soon to be available, are seen as pressuring e-reader makers to lower prices.
Amazon has lowered the Kindle's price several times since the e-reader with a grayscale screen debuted in 2007 at $399. The Nook was released late last year for $259. Both e-readers are creeping closer to the price of bookstore chain Borders Group Inc.'s new $149 Kobo e-reader, which will be available in July and work with Borders' online bookstore. (More Amazon stories.)