Amazon Slashes Kindle's Price

Amazon (AMZN Quote) has slashed the price of its Kindle e-book reader as the Internet giant attempts to boost take-up of the technology.

The 6-inch Kindle, known as the Kindle 2, is now being sold for $299, down from its previous price of $359. Amazon, which recently launched its new Kindle DX, quietly changed the Kindle 2's price-tag on its Web site on Wednesday, in a move clearly designed to popularize e-book readers.

Despite plenty of hype, Amazon has not yet revealed how many Kindles have been sold since the technology was introduced in 2007. However, the Kindle 2 price change significantly undercuts Sony's (SNE Quote) PRS-700 device, which also has a 6-inch screen and costs $349.99.

With the launch of the larger, more expensive Kindle DX, Amazon has shifted its focus from earlier versions of the technology. The Seattle-based firm is now looking to reduce its Kindle 2 inventory.

The recently launched Kindle DX remains priced at $489.

Touted as the savior of the publishing industry when it was launched last month, the Kindle DX sold out in a matter of days according to media reports.

Considered a key weapon in Amazon's battle with eBay (EBAY Quote) and Wal-Mart (WMT Quote), the Kindle DX has nonetheless come under fire for its $489 price tag.

Amazon shares rose $1.73, or 2.29%, during Wednesday trading, closing at $77.36.