Barnes and Noble share price dips on Kindle news [Update]

Amazon revealed three new versions of its Kindle eReader device (six if you count the "Special Offers" versions) and the all new Android powered Kindle Fire tablet today. The new devices' features and their ultra low prices are likely the reason why book seller Barnes and Noble is seeing a large drop in its stock price today. Forbes.com reports that the price has dipped down over 9 percent as of the posting of this article. The price went down soon after Amazon's press event in New York City started earlier today.

Investors are clearly supportive of what they are seeing about Amazon's new Kindle eReaders, which start at just $79 and will almost certainly be huge sellers for the online retailer. The Kindle Fire, the 7 inch touch screen Android-based tablet, will be priced at $199. That's $50 cheaper than the Nook Color, another Android-based device from Barnes and Noble that in addition to serving as an eReader also comes with games, a web browser and other features. However, it can't stream video like the Kindle Fire can from Amazon's own video service (with a subscription to its Amazon Prime service).

Barnes and Noble is rumored to be working on the Nook Color 2, although the rumors of a September launch seem to be premature. In any case, it seems that at the moment investors are taking their money out of Barnes and Noble and placing their bets that Amazon's new Kindle devices will be the top dog in terms of eReaders.

Update: AllthingsD.com reports that Barnes and Noble is now sending emails to customers offering a $25 discount on the Nook Color.

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