Online retail giant Amazon.com has joined the price war of eBook readers, and has slashed the price of its popular Kindle reader by more than a quarter.

The Kindle is available at a new price of $189, down from the previous $259, Xinhua reported citing a statement released by Amazon.

Amazon’s move came hours after Barnes and Noble, the largest bookseller in the US, slashed the price of its 3G Nook eBook reader from $259 to $199. Barnes and Noble also introduced a Wi—Fi version of Nook which is priced at $149.

Amazon said it will continue to offer free 3G connectivity for Kindle with no monthly fees or annual contracts.

Amazon sells another eBook reader called Kindle DX, whose price has remained unchanged at $489 since it was unveiled in May 2009.

RELATED NEWS

Amazon claims ebook sales milestone July 21, 2010

More In: Business | Companies