Amazon announced a Kindle version which will be ad supported and offered at a lower price point, showing ads of companies like Visa or Buick on the Home screen and when the screen saver is turned on.The Hardware itself will be unchanged, however since the ads will be likely to alter the user experience we are devoting a separate post for this to gather your comments and opinions.
The Kindle E-Reader is still one of the best dedicated E-Readers out there, so it goes without saying that it is a smart move to lower the price and thus lower the entry barrier for new users into the Kindle environment. This version will obviously appeal to price conscious users, and the fact that the ads are not shown when the E-Reader is actually being used to read is a big plus.
What remains to be seen is if the lowered price is actually enough to attract new users, as the difference in in our opinion not big enough to justify ads for the rest of your (Kindle-) life, but we also might be wrong about that.
Let us know what you think in the comment or in the forum!