Barnes & Noble announced that they will be offering the Nook Wi-Fi for just $149. The price of the 3G version of the electronic book reader will be reduced to $199.

“People who love to read will find tremendous value with the new Nook Wi-Fi, the most full-featured, low-cost eReading device on the market, and our bestselling Nook 3G now at an even lower price,” said Tony Astarita, Vice President, Digital Products, Barnes & Noble.com. “This expanded choice offers best-in-class, best-priced dedicated eBook Readers featuring eBook sharing, access to our vast eBookstore, great free and exclusive content and much more. And with expansion of fast and free Wi-Fi access beyond Barnes & Noble stores to thousands of AT&T Wi-Fi Hot Spots, we re bringing additional freedom and flexibility to all NOOK 3G and Nook Wi-Fi customers.”

Right now the Nook, which Barnes & Noble launched in October 2009, is facing fierce competition from Amazon’s Kindle and Apple’s iPad.