How much would you spend on a 7 inch tablet? $500? $300? How about $250? That’s the number eBook company Kobo is eyeing off, with a price drop on its tablet-based eReader heading our way in November.

The Kobo Arc was announced two weeks ago and features a dual-core processor, high definition 7 inch screen, Android 4.0 “Ice Cream Sandwich,” WiFi, ten hour battery, and a price that made it even competitive with Google’s own recently released Nexus 7 tablet.

Back then (on September 6), the Kobo was looking for a $249 starting price for 8GB and $299 for 16GB, less than the $319 for Google’s 16GB Nexus tablet.

A day later, Amazon announced updates to its Kindle tablet range, though none are currently slated for release in Australia.

Now, and from the looks of things, Kobo is going to attempt to take some of the market from Google and Amazon with better pricing on the 7 inch Android-based eReaders, with a change in storage sizes and more competition in pricing.

As of this week, the Kobo Arc will be hitting in November with a 16GB model for $249.99, 32GB for $299.99, and a 64GB for $349.99.

With a $70 difference between Kobo’s tablet and Google’s, there’s some serious competition happening here, and it’s good news for consumers eager for a bargain.

Kobo’s Arc will go online for pre-order in the next few weeks with expected delivery in November, but with rumours suggesting an iPad Mini and more small tablets from other manufacturers already out there, expect more news in the seven inch tablet space.