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According to details revealed early to Bloomberg, the Kindle Fire sports a 7-inch display and is priced at $199. It offers Wi-Fi connectivity but no 3G; it also lacks a camera and microphone.
UPDATE: During the press event, Bezos announced that the device will ship on November 15, that it contains a dual-core processor and multi-touch IPS display, weighs 14.6 ounces, and includes a new web browser called Amazon Silk. Content can be synced on the tablet with the same Whispersync technology used on Amazon's other Kindle devices.
In addition, the company is using the device to bolster subscriptions to Amazon Prime, the company's $79-per-year membership service that offers streaming video and free two-day shipping on all of its items, with a free 30-day trial.
In a separate interview with Bloomberg, Amazon CEO Jeff Bezos contends that Amazon's edge in the tablet market is price.
“What we are doing is offering premium products at non-premium prices,” he says. "[Other tablet developers] have not been competitive on price” and “have just sold a piece of hardware. We don’t think of the Kindle Fire as a tablet. We think of it as a service.”
Most other tablet devices, including the iPad and BlackBerry PlayBook, bear price tags twice that of the Kindle Fire. However, given the lack of a camera, microphone and 3G connectivity, perhaps it's better to think of it as a competitor to Barnes & Nobles's $249.99 Nook Color.
Shares of Barnes & Noble were down approximately 9% during the announcement.
For further details, catch our live blog from the Amazon event.
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TV Commercial for Kindle Fire
For Mashable's Complete Amazon Kindle & Kindle Fire Coverage
Amazon’s Tablet Event [LIVE BLOG]
Amazon Cuts Kindle Price to $80
Amazon Announces Kindle Touch: $149 With 3G, $99 Without
Amazon Launches Silk Web Browser for Tablets
Amazon Unveils First Ad for Fire [VIDEO]
Amazon Kindle Fire: First Impressions
Amazon Fire Puts Barnes & Noble in a Tight Spot