E-Reader Price War: Will Kindle Slash Price to Match Nook? - TheStreet

E-Reader Price War: Will Kindle Slash Price to Match Nook?

Barnes & Noble is lowering its price on its e-reader as pressure in the market intensifies.
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NEW YORK (

TheStreet

) -- As the

e-reader war intensifies,

Barnes & Noble

(BKS) - Get Report

has announced that it is offering a lower-priced Nook.

The Nook Wi-Fi is currently available online at nook.com and bestbuy.com for $149. Barnes & Noble is also lowering the price of its original Nook, which boasts both 3G and W-Fi capabilities, to $199 from $259. This now undercuts the price of

Amazon's

(AMZN) - Get Report

Kindle, which is $259 and does not provide Wi-fi service.

More On The E-Reader

Is the E-Reader Dead?

Both Amazon and Barnes & Noble are making a concerted effort to bring the e-reader devices to the masses, forming exclusive partnerships with

Best Buy

(BBY) - Get Report

and

Target

(TGT) - Get Report

.

This also follows

Borders'

(BGP)

launch of its own e-reader, the Kobo, which retails at $150. The device is scheduled to ship on June 17.

Sony

(SNE) - Get Report

also offers a cheaper Pocket Edition e-reader for $169.

Investors have been concerned about the future of the e-reader since the launch of

Apple's

(AAPL) - Get Report

iPad, which has e-reader capabilities as well as a bevy of other applications and Web surfing options. The iPad starts at $500.

So as e-readers become more affordable in oder to compete with the iPad, what does this mean for Amazon? Will Amazon rely on Kindle's No. 1 status, or will it be forced to slash prices as well?

-- Reported by Jeanine Poggi in New York.

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