We don’t know if Asus or someone else will manufacture it, but a few sources have confirmed that Google is indeed preparing to launch its first Nexus tablet.

For the first time, the price will be right, we are hearing between $199 and $249 might be the sweet spot and the main competitor is Amazon’s Kindle Fire, not the iPad. The plan is to kill sales Kindle Fire sales. Of course, Google wants to fight Apple as well, but this will take more time.

The processor of choice is Tegra 3 and this is why many thinks that Asus might be building the new tablet, as it already showcased a 7-inch Eee Pad powered by the same chip. Amazon has managed to upset Google quite a lot, by selling more than four million tablets in a single quarter and eating into the Android tablet market at the expense of other Google partners.

This is why Google wants to teach Jeff Brazos a lesson and at the same time capture some significant market share and stand a better chance against the iPad 3, or Apple’s rumoured iPad mini.