Amazon Drops Kindle Price to $189 to Compete With Nook and iPad

Ever since the release of the iPad, we've been waiting for the e-book reader price drop. If the iPad, with its color screen, long battery life, fast processor, and huge app store can sell for $500, how could the Amazon Kindle and Barnes & Noble Nook survive at $259? Today seems to be the day of reckoning: E-book readers are in a race to the bottom.

Kindle announced today that the Kindle 2, with its Whispernet 3G, will see a price cut from $259 to $189. That sub-$200 price point could make a...