The basic model will cost $159, down from $199 for the old model. It will start shipping Sept. 14. It's also coming with high-end versions, including ones with a screen nearly as big as the iPad.
Amazon also refreshed its line of stand-alone e-readers. Called Paperwhite, the new e-reader model has a black-and-white screen.
The Kindle Fire is an effort to take a larger share of a tablet computer market dominated by Apple's iPad.
Amazon has been selling lower-priced tablets at thin, if any, profit margins to boost sales of digital items from its online store.