• Fast Company, Monday, June 21, 2010 1:40 PM

Hitting Amazon where it hurts, Barnes & Noble just unveiled a $149 Wi-Fi-only Nook e-reader. To boot, the bookseller is also lowering the price of its 3G-enabled Nook from $259 to $199. The changes represent "the first serious attempt at undercutting Amazon's Kindle e-reader business with a store and hardware combo," Fast Company writes. "But it's more than that: It's a sign of the changing e-reader game," which the magazine calls a "the beginning of the race to the bottom."

In other words, as with netbooks, e-readers are destined to become cheaper, and less differentiated. Fast Company calls the new $149 price tag "truly magical," and a force to be reckoned with when combined with Barnes & Noble's huge e-bookstore "ecosystem." Furthermore, being tethered to wireless networks isn't likely to turn off too many consumers -- most of whom download reading material far less frequently than, say, check their email.

Read the whole story at Fast Company »