Amazon has announced that a new version of the Kindle is available now for pre-order for only $114, and will be released on May 3, 2011.

The new version of the popular e-reader device is called the
Kindle with Special Offers. It’s the same device as the existing 6-inch graphite Wi-Fi version (that’s $139), but it’s $25 less. And why is it $25 less? Because the $114 “Special Offers” version includes ads — but fear not, the ads are NOT within the ebooks; they only appear on the screensaver (which, let’s face it, no one pays attention to) and at the bottom of the home screen.

I know, lots of people freak out at the thought of ads — and I haven’t seen this new version, so I can’t say from experience — but seriously, if the ads don’t interfere with the reading, I’d say it’s well worth the low price. I have the 6-inch graphite Wi-Fi Kindle and believe me, if I didn’t already own it, I’d grab the $114 version without hesitation. Actually, I’ve owned every generation of Kindle after the first one and I just love it more and more with each upgrade.

According to Amazon, the “Special Offers” are:

* $10 for $20 Amazon.com Gift Card
* $6 for 6 Audible Books (normally $68)
* $1 for an album in the Amazon MP3 Store (choose from over 1 million albums)
* $10 for $30 of products in the Amazon Denim Shop or Amazon Swim Shop

There will also be Screensaver preferences and a free Kindle app and eventually a website called AdMash where you can help pick future screensavers.

If you feel like you just can’t live with ads on the screensaver, you can still get the non-ad Wi-Fi version for only $139 or the 3G + Wi-Fi version for $189.

What do you guys think? Kindle with ads or no ads? Is it worth the drop in price to have with supposedly unobtrusive ads?

Features

• All-New, High-Contrast E-Ink Screen – 50% better contrast than any other e-reader
• Read in Bright Sunlight – No glare
• New and Improved Fonts – New crisper, darker fonts
• New Sleek Design – 21% smaller body while keeping the same 6″ size reading area
• 17% Lighter – Only 8.5 ounces, weighs less than a paperback
• Battery Life of Up to One Month – A single charge lasts up to one month with wireless off
• Double the Storage – Up to 3,500 Books
• Built-In Wi-Fi – Shop and download books in less than 60 seconds
• 20% Faster Page Turns – Seamless reading
• Enhanced PDF Reader – With dictionary lookup, notes, and highlights
• New WebKit-Based Browser – Browse the web over Wi-Fi (experimental)