Amazon Slashes Kindle's Price

Amazon ( AMZN) 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) 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) and Wal-Mart ( WMT), 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.

More from Technology

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Intel CEO's Surprise Exit Leaves 'Large Void' That Won't Be Easy to Fill

Intel CEO's Surprise Exit Leaves 'Large Void' That Won't Be Easy to Fill

The Winners and Losers in Thursday's Market

The Winners and Losers in Thursday's Market

Will Porsche's Electric Car Push Take Down Tesla?

Will Porsche's Electric Car Push Take Down Tesla?

Intel CEO Brian Krzanich Steps Down: Here Are Some of His Biggest Moves

Intel CEO Brian Krzanich Steps Down: Here Are Some of His Biggest Moves