Only one day after a price drop for the Barnes & Noble nook, Amazon reduced the price for the Kindle 2.

The  nook fell from $259 to $199, a new WiFi only nook costs merely $149.  In response, Amazon has cut the price of the popular Kindle from $259 to $189. In contrast to the nook the Kindle is a 3G only device but with global wireless connection for free!

Since even a bare bone device like the new Kobo reader costs about $149 it seems that the price war is just about to begin and we will see some major price drops within the next few weeks.

My guess is, that low end devices like the Kobo will cost no more then $49 by the end of the year.