Barnes & Noble announced this morning that it will release a software upgrade to its Nook Color e-book reader, giving it much of the functionality of its new Nook Tablet.

B&N will lower the price of the Nook Color to $200, as it launches the $250 Nook Tablet. The Nook Color has half the memory of the 16GB tablet, 8GB, though it can accept 32GB more; and it has a slower processor. Jamie Iannone, president of digital products for B&N, noted that the Nook Color has the same display as the Nook Tablet.

Among the features that the upgrade will provide to the Nook Color: new apps, including Pandora, Rhapsody, GrooveShark, and ShowTime; more interactive magazines and books; and a redesigned customizable home screen. UPDATE: At Barnes & Noble's website, Netflix and Hulu Plus are promised to be "coming soon."

The update will be available around Thanksgiving. Current Nook Color owners will be able to update their e-readers for free.