Amazon's 7-inch will be its answer to the Nook Color, and will probably hit the same price point. It should be no more expensive than $250 and maybe as low as $199. Amazon might even use ads to reach the low point. It will be slightly faster and a more fully fledged Android device. Amazon is probably betting this is the device that will sell through the roof.

Amazon's 10-inch will be more like the Kindle DX than an iPad killer. It will just be available for users with very specific use cases and sales expectations will be low. It should be priced between $400 and $500, double whatever the 7-inch costs. Amazon can't have high hopes going up against the iPad after seeing the bloodbath of 2011, but there's not a lot it can do about it either. At the very least it will make the smaller tablet look like a better bargain by putting it next to a much higher priced alternative, which I suspect is the role the Kindle DX plays more than anything else.