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Barnes & Noble's updated share price has been added to this story, as well as additional CEO comments.

NEW YORK (

TheStreet

) --

Barnes & Noble

(BKS)

unveiled the latest addition to its Nook family of e-readers on Monday, launching the new

Nook Tablet

at an event in Manhattan.

The struggling bookseller priced the e-reader/tablet at $249, but slashed the price of its existing Nook Color to $199 from $249. There had been speculation that Barnes & Noble's Nook Tablet would be priced at around $199, the same as

Amazon's

(AMZN)

recently-launched Kindle Fire, although Barnes & Noble clearly wants to

protect

its bottom line.

The 7-inch touchscreen device comes preloaded with

Netflix

(NFLX)

and Hulu Plus, and includes free Wi-Fi at

AT&T

(T)

hot spots.

The Nook Tablet, which weighs under 1 pound, also offers 11.5 hours of battery life, 16 gigabytes of built-in memory and free cloud storage. The device, which hits stores next week, is also compatible with HD Entertainment.

Speaking during the launch, Barnes & Noble CEO Bill Lynch took a swipe at Amazon's Kindle Fire, saying that its memory is "deficient for a tablet."

The Kindle Fire comes with 8 gigabytes of internal memory.

Lynch also dubbed the Kindle Fire a "vending machine" for Amazon's services. "Nook, first and foremost, is about creating innovation in digital reading," he said.

Barnes & Noble also cut the price of its Nook Simple Touch to $99 from $139.

Shares of Barnes & Noble were down 2 cents, or 0.17%, to $11.59. Amazon's stock also slipped, dipping $1.03, or 0.48%, to $215.45.

--Written by James Rogers and Jeanine Poggi in New York

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