Our sources were right on the money: Barnes & Noble has just announced an 8GB version of its Nook Tablet, pricing it in direct competition with the Kindle Fire at $199. The Nook Color has also been reduced in price, down to $169. The new Nook Tablet is the same Android slate as the $249 offering that's been available since November, only with its onboard storage and RAM halved to 8GB and 512MB, respectively. Today's price alterations leave B&N with a device portfolio starting at $99 with the Nook Simple Touch, then stepping up to $169 with the Nook Color, $199 with the Nook Tablet 8GB model, and finally $249 with the 16GB Tablet. All options are available to buy today with free 24-hour shipping or in-store pickup available.

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