It all started as a rumor, but now here it is: Barnes & Noble is launching a Wi-Fi-only version of the Nook alongside its original 3G model, which will in turn get a cut in price. The Nook Wi-Fi will sell for a low $150, while the 3G unit will drop from $250 to $200. There's also good news for anyone who uses AT&T Wi-Fi hotspots.
With a new 1.4 firmware update, the Nook will now allow you to use any AT&T Wi-Fi hotspot for free, which is a nice incentive to go for the $150 model as opposed to the $200 3G unit.
So, why the Wi-Fi? Well, the iPad certainly hasn't hurt itself offering two different flavors, but Barnes & Noble's response is probably more in reaction to the Kobo, a $150 e-reader that will be offered by Borders. It's one place the e-reader can go that the tablet just can't yet: the land of super-cheap.