Barnes & Noble will release new e-reader to compete with Amazon.com's Kindle

Barnes & Noble Inc. is expected to unveil an electronic-book reader to compete with Amazon.com's Kindle in the still-small arena where some see book-selling's future playing out.

The New York Times reported that the reader, to be announced Tuesday in New York, will be called the "Nook" and sell for $259. The newspaper cited an ad set running in its book review section Sunday.

New York-based Barnes & Noble did not return calls. It launched an online store in July that sells versions of books for mobile devices and PCs. Sony also offers an e-reader, and IREX Technologies Inc. and Plastic Logic Ltd. will offer e-readers shortly.

Forrester Research predicts 3 million e-readers will sell in the U.S. in 2009, with sales doubling in 2010.

Source: The Associated Press