A day after Amazon's announcement of launching Kindle Fire, which will cost just $199, Best Buy announced a huge discount on BlackBerry PlayBook.

Best Buys has brought down the PlayBook price by $200, and the 16 GB product is now available at $299 while 32 GB and 64 GB versions are available at $399 and $499 respectively.

At $199, Amazon's 7-inch Android-based tablet is priced 60 percent below tablet competitors, as well as e-reader challenger Nook. The market was expecting a price range of $250 to $300 for the tablet, which runs on the Amazon's customized version of Android.

In addition, Amazon developed its own browser - Amazon Silk - for the device that would leverage its cloud computing infrastructure to provide faster Web browsing. As Amazon seeks to capture more of the video market, it has enabled Whispersync.

Earlier in September, it was reported that RIM Chief Executive Officer Jim Balsillie said the company had plans to cut the price of its tablet in the form of rebates. At the time RIM has said it sold some 200,000 units of the PlayBook during its August quarter, according to reports.