The boosted storage capacity (from 8GB to 16GB) and fast Wi-Fi are essential to Amazons primary focus: content. Amazon offers its devices at low prices but makes up for those losses when customers purchase content, according to Bezos.

For $50 a year, anyone who buys the $499 Kindle Fire HD will get 250MB of data per month and a $10 Amazon credit. Not mentioned during Bezos presentation: What happens if you go over that 250MB allotment?

Amazon is supplementing its content on the Kindle Fire HD with new features like X-Ray for movies (where users can pause a film to get more information about actors from IMDB); Whispersync for games (so players never lose their place and have to start over); and Immersion Reading for audiobooks (users can both listen to and read their books simultaneously).

Amazon last week announced that the , but the company is introducing an upgraded version and slashing the price from $199 to $159. The upgraded Fire will ship Sept. 14.

Amazons new Kindle Paperwhite, a front-lit e-reader with 25 percent better contrast than previous Kindles, is available to pre-order now. The Paperwhite ships Oct. 1. A wireless model retails for $119; the 3G version for $179.