NEW YORK ( TheStreet) -- Borders ( BGP) is making another play in the mounting e-reader war, this time rolling out its Kobo 2, a Wi-fi device for just $139.

This is the first version of the device, which launched in June, that has W-fi access. The original model had a Bluetooth sync, but users still needed to plug in the device in order to download content.

The Kobo 2 is $10 higher than the first model, but is still competitive with similar devices from rivals Amazon ( AMZN) and Barnes & Noble ( BKS). Amazon's basic Wi-fi-only Kindle retails for $139, while the same version from Barnes & Noble is $149.

These three major players have been battling on price over the past several months after Barnes & Noble reduced its price on its Nook to $199 from $259. Amazon followed suit by lowering the price on its Kindle by $70 to $189, before introducing its new basic model. Amazon also offers the Kindle DX for $379 from original price of $489.

At the end of August, Borders dropped its price on its Kobo to 129.99 from $149.99, while its Aluratek Libre reader is now sold for $99.99 from $119.99.

Aside from price, these companies have also been trying to compete on other fronts. Both Barnes & Noble and Amazon have formed partnerships with retailers like Target ( TGT) and Best Buy ( BBY) to carry the device. Barnes & noble has also set up special sections of stores to highlight the Nook.

--Written by Jeanine Poggi in New York.

>To contact the writer of this article, click here: Jeanine Poggi.

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