Google just announced on its blog that it's partnering with hardware maker iRiver to release the first e-reader device with built-in Google eBookstore support.

The e-reader device is called the iRiver Story HD and looks like the first generation Amazon Kindle, but with bronze buttons.

Using the Story HD, you'll be able to buy books from the Google eBookstore, a first for a dedicated e-reader device.

Before, you could buy books from the Google eBookstore and then read them on your phone or tablet.

According to Google, the eBookstore features "hundreds of thousands" of eBooks, and over three million free eBooks Google has scanned since 2004 as a part of its Google Books project.

Target is releasing the e-reader in stores nationwide beginning July 17 for $139.99, the same price as the Kindle 3 and Nook Simple Touch. The device will be released with Wi-Fi compatibility, with no 3G cellular data option.

When Google first launched Android, it partnered with HTC to release a smartphone, but eventually released a phone of its own (the Nexus One). Will Google release an eReader of its own someday too?

(via Google Blog)