Earlier today, Barnes & Noble cut the price of the 3G nook from $259 to $199 and introduced a WiFi-only model for $149. Now, Amazon has responded by cutting the price of the Kindle from $259 to $189, $10 less than the nook. This is for Amazon's global model, which uses AT&T's network for its Whispernet service. The U.S. domestic-only model has apparently been discontinued.
Amazon is widely rumored to have an updated, thinner and lighter Kindle model in development for release later this year. If that's true, the price of the current Kindle 2 may be cut even further, to compete with the $149 WiFi-only nook. In any event, you may want to wait a week or two (at least) to see how these price cuts shake out; Barnes & Noble may well drop prices further in response to Amazon.