So, "Amazon Kindle" Tablet is a real deal afterall and at $250 (unconfirmed) it's sending shudders down the spines of the likes of Samsung/Motorola and ofcourse Barnes & Nobles. Throw in a year of Amazon Prime ($79/yr) service, it becomes even more attractive.

Amazon’s Kindle Tablet Is Very Real. I’ve Seen It, Played With It

the device is a 7-inch tablet with a capacitive touch screen. It is multi-touch, but from what I saw, I believe the reports that it relies on a two-finger multi-touch (instead of 10-finger, like the iPad uses) are accurate. This will be the first Kindle with a full-color screen. And yes, it is back-lit. There is no e-ink to be found anywhere on this device.

Originally, Amazon had planned to launch a 7-inch and a 10-inch tablet at the same time. But that plan changed this summer. Now they’re betting everything on the 7-inch. If it’s a hit, they will release the more expensive 10-inch tablet in Q1 2012.

So how much will the 7-inch Kindle cost? $250.