NEW YORK (

TheStreet

) -- Look for a price cut to

Barnes & Noble's

(BKS) - Get Barnes & Noble, Inc. Report

Nook or some new models. As the bookseller's stock takes a hit following

Amazon's

(AMZN) - Get Amazon.com, Inc. Report

unveiling of several new e-readers and a color tablet, Barnes & Noble will have to respond.

Amazon introduced its Kindle Fire tablet Wednesday at a press conference in New York. At $199, Amazon's Kindle Fire is $50 less than Barnes & Noble's Nook Color, but has all the features of a tablet, including streaming videos and music downloads. How can Nook Color, a device designed for the book lover, compete with a cheaper, full-fledged tablet?

On top of this, Amazon unveiled three new pure e-readers. The basic Kindle will cost $79; the new Kindle Touch will retail for $99; and the Kindle Touch with 3G access will cost $149. Previously, Amazon's cheapest e-reader cost $114.

In comparison, the Nook Color is $249; the all-new Nook is $139; and the Nook first edition is $89.

Barnes & Noble has been relying on the success of its Nook to keep the bookstore chain afloat. Without its success, the company may have easily gone the way of now defunct

TheStreet Recommends

Borders

.

The question is, how will Barnes & Noble respond. It seems almost inevitable that it will either have to lower prices or introduce new models. The question is, how fast will the company act with the all-important holiday season quickly approaching?

Shares of Barnes & Noble plunged 9.5% to $11.95 following Amazon's press conference.

-- Written by Jeanine Poggi

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