Barnes & Noble has introduced a new model of its Nook Tablet, which packs 8GB of internal memory and retails for $199.

The new device is a budget alternative to the $249 16GB Nook Tablet, with half the onboard storage and half the RAM (512MB compared to 1GB) of its pricier sibling.

Both tablets boast 7-inch displays and 1GHz dual-core processors, run on a modified version of Android, and are only available in North America. 

We didn't start the Fire

The Nook division has been so successful for Barnes & Noble that the company is currently reviewing whether it could spin off the division as a separate company.

"For any customer who likes to read digitally, watch movies or TV shows, browse the web, or help their kids read and learn through interactive books and apps, our new $199 Nook Tablet with 8GB is the best product value on the market," commented Barnes & Noble CEO William Lynch.

Then, taking a swipe at Amazon, he added, "Nook Tablet is the highest-rated wireless media tablet in the 7-inch class."

Barnes & Noble has also announced that its Nook Color e-reader will have its price cut to $169.

[source: Barnes & Noble]