Barnes and Noble is reportedly planning to launch a new budget version of its Nook tablet product on Wednesday, in a move undoubtedly intended to compete with Amazon’s popular Kindle Fire.

The new Nook will include 8GB of storage (compared to the existing Nook’s 16GB) and although price hasn’t been announced, analysts speculate that Barnes and Noble will sell the tablet for no more than $199, which is $50 cheaper than the current Nook. Rumors seem to indicate that storage capacity will be the only difference between the two Nook tablets.

Amazon’s Kindle Fire tablet has been wildly successful in the portable market due to its comparatively low price of $199, and it’s likely that Barnes and Noble is attempting to compete in that market with the Nook—the Kindle Fire only provides 8GB of storage, so the lower capacity of the new Nook makes sense. Incidentally, the Nook Tablet has actually been extremely profitable for B&N since its introduction; it was the company’s top-selling device in 2011 and at one point they were considering splitting the tablet business off into its own company.

The new, cheaper Nook tablet should be announced on Wednesday, February 22. It is expected that the current 16GB Nook Tablet will remain available as a higher-end version of the device.