Both Amazon and Barnes & Noble dropped the prices of their dedicated e-book readers Monday, no doubt to compete with the likes of the iPad. Amazon now offers its 3G-enabled Kindle 2 for $189, while Barnes & Noble's 3G-enabled nook is now $199—both were previously priced at $259. Additionally, Barnes & Noble has introduced a WiFi-only Nook that will retail for $149.

Barnes & Noble led the pack on Monday with its announcement, bragging that it now offers the market's first sub-$200 dedicated e-reader. That title didn't last long, though, as Amazon's announcement came down the wire just hours later, beating the 3G-enabled Nook by $10 in price. The WiFi-enabled Nook's price can't be beat though: for the cost of a fancy dinner, you can get all the same features as the Nook 3G, but without the (otherwise subscription-free) wireless book delivery from anywhere.

Both companies have probably been pondering a price drop for some time, especially as the $500 iPad has narrowed the market for at least some readers. The Kindle and Nook have notably fewer features than the iPad and are arguably less exciting devices overall—but that's their strong point. Serious e-book aficionados continue to argue (as do we here at Ars) that the Kindle offers a more focused, less eye-straining reading experience.

But still, with fewer capabilities, it only makes sense to drop the price and attract more users. After all, for a new user looking to get into e-books, $260 was still awfully high compared to sub-$200. Mysteriously, Amazon's larger-screened Kindle DX remains at the same overpriced tier it always was at $489, making us wonder if the company has already given up on moving higher-priced units.