After Nook Announcement, Amazon Drops Price of Kindle to $189

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That was fast. Hours after Barnes & Noble introduced a Wi-Fi only version of its Nook e-reader and dropped the price of its 3G device to $199, Amazon responded by dropping the price of its Kindle e-book reader from $259 to $189.

Amazon’s Web site has been updated, and the cheaper version of the Kindle is for sale now. The Kindle DX is still priced at $489.

Amazon said that customers who bought a Kindle that was shipped in the last 30 days are eligible to receive the price difference as a credit.

Barnes & Noble said it will offer a $10 refund to customers who purchased a Nook in the last 14 days – the difference between the new Nook price and a recent promotional price. B&N has recently been offering $50 gift cards with every Nook purchase, which could be used toward the price of the e-reader.

The discounted Kindle e-book can hold up to 1,500 books, includes 3G capabilities, and includes a six-inch E Ink screen.

The Kindle is also sold at brick-and-mortar Target stores. A Target spokeswoman confirmed that the Kindle will also be available at Target for $189.

Editor’s Note: Updated at 11pm with additional info from B&N and Target.

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