Amazon said the new device will give users a faster web browsing experience, thanks to an all-new Amazon Silk web browser, which is available exclusively on Kindle Fire.
Amazon Silk deploys a "split" architecture and can make a dynamic decision on which of the subsystems will run locally and which will execute remotely on Amazon's cloud computing platform each time users load a web page.
While introducing the Kindle Fire, Amazon also touted some 18 million movies, TV shows, songs, magazines and books that the online retailer can offer on the new device.
The new tablet will come with a one-month free trial of Amazon Prime, a membership service that costs 79 U.S. dollars a year and offers members free two-day shipping on million of items Amazon sells and unlimited streaming of over 11,000 movies and TV shows.
Like Amazon's other Kindle electronic readers (e-readers), the Kindle Fire also offers free cloud storage for all of users' Amazon digital content.
In addition to Kindle Fire, Amazon on Wednesday unveiled three new Kindle e-readers that are smaller, lighter and cheaper than previous products.
Among them are a "Kindle Touch" with touch screen at 99 dollars, and a "Kindle Touch 3G" with free 3G connectivity sold at 149 dollars.
Amazon also unveiled a non-touch-screen Kindle that has built- in Wi-Fi connectivity and is priced as low as 79 dollars.
Some analysts say a tablet from Amazon has the potential to challenge the dominant iPad with the support of Amazon's strong e- commerce platform.
A report released in August by market research firm Forrester said that Amazon could become Apple's top competitor in the tablet market.