The 8.9-inch Kindle Fire HD with 16 GB of memory will sell for $299 and start shipping November 20. The 7-inch version with the same amount of memory will be priced at $199 and begin shipping September 14.
A Kindle Fire HD with 32 GB of memory and 4G LTE will be $499. This version of the device will also come with a data plan that offers 250 MB a month for $50 a year.
Amazon also upgraded the current version of the Kindle Fire, which will now have 40 percent more battery life, a faster processor, more memory and will price at $159.
The low price point of the new Kindle Fire HD and the price markdown of the current Kindle Fire are part of Amazon's plan to make moneyoff what users buy on the device, not the device itself. (Read More:Amazon's Risky Bet on Profit-Free Hardware)
"How are these prices possible?" Bezos said at the event. "We want to make money when people use our devices, not when people buy our devices."
The Kindle Paperwhite e-reader has a brighter, sharper, front-lit screen, a font changing feature and an adjustable size feature, which allows users to change the size of what appears on the display screen.