NEW YORK -- Sony (NYSE: SNE) today renewed its assault on the Amazon Kindle, unveiling a new version of its Reader Digital Book e-reader, the Daily Edition, which sports a 3G wireless connection and a 7-inch touchscreen.

The new, $399 model will be available in December, "in time for the holidays," said Steve Haber, president of Sony's Digital Reading business division, during a press conference here today at the New York Public Library.

In addition to the Daily Edition, Sony today also showed off the Touch Edition, with a 6-inch screen and a suggested retail price of $299, and the Pocket Edition, with a 5-inch screen, and a suggested price tag of $199. The Touch Edition and Pocket Edition, which were announced earlier this month, are available now.

The devices use an updated version of Sony's software, eBook Library version 3.0, which adds Mac compatibility. The software can read .PDF files, Microsoft Word files, and files in several other common formats.

The models will be available at over 8,000 retail locations including J&R, Best Buy, Staple, Walmart, and Datavision, Haber said.

The launch furthers efforts by Sony, an early player in e-readers, to thwart the meteoric rise of the Amazon (NASDAQ: AMZN) Kindle, the latest version of which also sports a 3G wireless connection. That feature enables users to buy and download e-books directly to the Kindle.

Now, with the launch of the Daily Edition, Sony will be able to offer a model with similar functionality. Moreover, the Kindle lacks the Sony Daily Edition's touchscreen.

But Amazon's not the only contender that Sony has to worry about. Barnes & Noble recently announced its own plans to enter the e-reader space through a deal with hardware vendor Plastic Logic.

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Amazon and Barnes & Noble (NYSE: BKS) also boast larger digital libraries than Sony: The Kindle counts a library of more than 330,000 digital works while Barnes & Noble has its e-book store has 700,000 titles -- though that number includes many older books in the public domain.

Sony, meanwhile, offers around 200,000 books of its own, but has been busily striking alliances to extend its reach. For instance, it recently struck a partnership with Google, which Sony said provides its e-reader users with access to more than 1 million free, digitized public domain works.

Ties to libraries

That effort also continued today, with Sony saying that it's teaming up with libraries to offer still more free books to its users.

For example, the New York Public Library (NYPL) will begin offering over 40,000 titles for free to those with Sony e-readers.

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In addition, library systems will enable Reader Digital Book owners to check out books from their local library without leaving their home, according to Sony's Haber. Adobe Digital Rights Management technology (define) will ensure that the books expire on the e-reader after 21 days, he added.

Sony said it would be working with OverDrive, a firm that specializes in distributing e-books, to add free local library titles to the eBook Store by Sony -- the company's online book store. Users can locate their local libraries' collections by entering their ZIP code into the new Library Finder application, also unveiled today, before downloading e-books using a valid library card.

Through the arrangement, Sony said it would have access to the "thousands of libraries" with which OverDrive works.

"Users simply browse or search their library Web site, check out their selected e-book with a valid library card, and download to a PC," OverDrive said in a statement earlier this month. "Once downloaded, the e-book may then be transferred to the Sony Reader via free Adobe Digital Editions software."

EPUB and socializing

Sony also pointed out that more independent bookstores are joining in to support the open EPUB e-book format -- such as indie bookselling giant Powell's Books of Portland, Ore. and members of the American Bookstores Association.

The consumer electronics giant has thrown its weight behind EPUB, the format in which Google makes its books available. Sony has vowed to scrap its proprietary technology and convert its e-book store to EPUB by the end of the year.

Such a move would make books on the eBook Store by Sony compatible with multiple devices, whereas rival Amazon's books remain in a proprietary format.

Additionally, Sony said it's building a social networking site for readers at the Web site Words Move Me. The site is designed to allow people to share their passion for reading, according to Haber.

Thumbs-up

Forrester analyst Sarah Rotman Epps has already given Sony an enthusiastic thumbs-up for its design, its mix of devices and price points, and its integration with an open format.

"The new screen size is an elegant solution to the problem of how to optimize for newspaper and magazine content without building an oversized, ungainly device. (The Daily is slightly smaller than the Kindle 2, and with its built-in cover weighs the same as the Kindle 2,)" she wrote in a blog post this morning.

"Unlike the Kindle, the Daily is a touchscreen. Even with the higher price, this is an attractive product for consumers who value Sony's design and touchscreen along with wireless access."

She also said that Sony also has on its side a better integration of free public library e-books into its store.

"This is not just good PR and a public service, but also a smart business decision for Sony," she said. "Sony is telling consumers, 'You don't need to buy our content -- or buy any content -- to get value from our devices.' And by going open, Sony helps compensate for its biggest weakness: its lackluster eBookstore, which pales in comparison with Amazon.com."

Epps said the result means that Amazon will have a serious rival.

"Overall, these and previous moves put Sony in a strong position to compete against Amazon this holiday season. Sony's well-designed product lineup ... will measure up well against the ugly duckling Kindle 2 and Kindle DX."

Update adds comments by Epps. InternetNews.com Senior Editor Michelle Megna contributed to this story.