The new Nook Tablet will cost $249 and will be available in stores on Nov. 17.
It will compete head-to-head with Amazon's Kindle Fire, which sells for $199.
The 7-inch Nook Tablet has a more powerful processor and twice the storage capacity of the Kindle Fire.
Barnes & Nobel and Amazon have been locked in a price war to offer the cheapest e-reading devices.
Amazon's black-and-white E Ink Kindle is the cheapest, selling for $79.
Barnes & Nobel cut the prices on its existing e-readers. The Nook Color is now $199, down from $239, and the Nook Simple Touch black-and-white reader, which has no browser, is now $99, down from $139.
Unlike Amazon, Barnes & Noble doesn't offer streaming services, but the Nook includes preloaded apps from Hulu and Netflix Inc. that allow users to subscribe to stream movies and TV shows.
The Associated Press contributed to this story.