In its latest salvo in the tablet competition with Amazon.com, Barnes & Noble said it will sell a Nook Tablet device with 8 gigabytes of memory for $199.

Its current 16GB device sells for $249. Amazon.com’s Kindle Fire also has 8GB and sells for $199. In addition, Barnes & Noble cut the price of the Nook Color to $169 from $199.

Barnes & Noble also said its fiscal third-quarter net income fell 14 percent, as rising costs offset higher sales. Net income for the 13 weeks ended Jan. 28 fell to $52 million, or 71 cents per share. That compares to $60.6 million or $1 per share last year.

Revenue rose 5 percent to $2.44 billion. Analysts expected revenue of $2.53 billion.