• by Mark Walsh  @markfwal, February 21, 2012

Confirming earlier reports, Barnes & Noble Tuesday announced it will launch an 8GB version of its Nook Tablet for $199—the same price as Amazon’s Kindle Fire, and about $50 less than the original, 16GB version of the device. The book retailer is hoping the price cut will make it more competitive with the Amazon tablet, which has become the company’s best-selling product and the nearest rival to Apple’s iPad.

In connection with the move, Barnes & Noble has also dropped the price of the Nook Color e-reader from $199 to $169. The company has bet big on the Nook line as a source of growth to help compensate for slowing sales in its traditional book business. Barnes & Noble today reported fourth-quarter results showing a 5% increase in revenue to $2.4 billion but a 14% decline in profit to $52 million, or 71 cents a share.

The $199 Nook Tablet will go on sale at Barnes & Noble stores and be available in the coming weeks at national retailers including Walmart, Best Buy and Target.