Tablet computers, such as the $199 Amazon Kindle Fire, may be all the rage now. But touch-sensitive e-book readers are getting a boost too, thanks to sinking prices.

On Friday, Kobo announced a $30 price drop on its Kobo eReader Touch device. The now-$99 Kobo e-reader hits this new low price point by showing ads at the bottom of its screen and as a screen saver when the Kobo Touch is powered off.

When Consumer Reports Electronics Editor Paul Reynolds first reviewed the $130 Kobo Touch, he found it to be a capable e-reader—if a bit outmatched by market stalwarts, the Amazon Kindle and Barnes & Noble Nook.

What's more, the Kobo Touch's new low price isn't unique now either given the B&N Nook Simple Touch ($99, without any on-screen ads) and the impending Amazon Kindle Touch with Special Offers, available November 21.

Still, there are some advantages to the Kobo e-reader—such as broader support for other e-book formats and very large on-screen fonts—that may appeal to some consumers. And as the third sub-$100 e-reader, the Kobo could be a nice holiday gift alternative—especially for those on tight-budgets.

For more information, check out Consumer Reports' buying guide to e-book readers and How to choose between tablet computers and e-readers.

Kobo unveils $99 ad-supported e-reader [CNet]
E-Reader Wars: $99 Kobo Challenges Barnes & Noble, Amazon [PC World]