Amazon’s Kindle Fire HD is a 7" tablet with a 1280x800 resolution screen. It's running Amazon's own custom version of Android 4.0 on a dual-core 1.2GHz TI OMAP4460 with Wifi, either 16GB or 32 GB of storage, and an XGA webcam. It features close integration with Amazon’s Kindle, MP3, video, and app stores.
Something tells me that Amazon is feeling some pain from B&N's clearance sale on the Nook HD and Nook HD+. That sale has been going on for a couple weeks now, and it will continue until the last Nook HD is gone. If I were Amazon I would consider waiting out the sale, but given the new tablets expected to launch in the next few months I don't think Amazon is willing to chance losing customers.
Edit: Nope. This sale ended and was succeeded by a sale at Amazon's retail partners.