MG Siegler:

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.

I love this! With the 10-inch, $499+  segment dominated by the iPad, the 7-inch market is still wipe open. The Kindle Tablet may have less frills/apps/speed than the iPad, but if it can created an easy, solid and user friendly experience for just a few simple things (like the original Kindle), then I think Amazon has a shot.