Amazon (AMZN) shed $60 off the price tag of the Kindle 2 to $299 from $359 that could result in higher demand for the mobile electronic reading device.

The move could push fence-sitters leery of the hefty price tag to jump onboard the electronic-reading train.

Recent optimism from analysts and tech watchers about the sales of revenue from the latest electronic reader might be the reason behind the price slash.

In a report Wednesday, Sandeep Aggarwal, an Internet research analyst at Collins Stewart, wrote he expected the Kindle to generate $310 million in revenue and $70 million in profit this year for Amazon.

The company's larger Kindle DX remains at its original $489 price.

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More than 300,000 books are available on the reading device, and users can subscribe to magazines and newspapers for a monthly fee.

Amazon didn't immediately respond to a request for comment.