It’s a potential ‘David and Goliath’ story. This week Google announced a few new products at their I/O Developer’s Conference, one of which is a sleek little 7 inch tablet dubbed the Nexus 7. This tablet is quite the game changer, as it not only has made Amazon’s Kindle Fire nearly obsolete, but also threatens to divert some of the iPad sales as well.

This spectacular new device provides an incredible amount of power for its $199 price tag. Hit the jump for some of the reported specs:

• 1280×800 IPS HD display (with 216 ppi)
• Tegra 3 Quad Core processor
• 1 GB of RAM
• 8 / 16 GB of storage (the 16GB version is only $50 more)
• 1.2 megapixel front-facing camera
• Wi-Fi, Bluetooth & NFC connectivity
• Up to 10 hrs battery life (9 when watching HD video!)
• Android 4.1 Jelly Bean OS

These specifications blow the Kindle Fire out of the water on every level possible: it adds a camera, one-ups the dual core processor with quad core, upgrades from 2.3 Gingerbread to 4.1 Jelly Bean (Android’s speedy new OS), and gives us even better pixel depth than the upcoming Microsoft Surface (which sits at only 208 ppi). To add insult to Amazon’s injury, Google is updating their entertainment service (Google Play) with a boatload of attractive new content, and providing this tablet for the same price as the now-mediocre Kindle Fire.

The only leg that the Fire now stands on is the stellar unlimited streaming service on Amazon Prime (Google Play is closer to the iTunes pay-per-download model) and their incredibly large library of eBooks. However, I can imagine that Amazon’s content will still be accessible from this device (we’ll see about the streaming), and if that’s the case, we might as well start casket shopping for Amazon’s short-lived hold on the cheap tablet arena.

As I said earlier, this device can easily deter certain people from going for the iPad as well. For example, those who feel a bit queasy when they look at Apple’s price tag will easily shell out half the money if it means they’ll still get a decent tablet. As well, current Android users will drool over the “buttery” new performance of Jelly Bean, which decreases lagging by a great amount.  While this device has nothing over the iPad spec-wise, we’ll see soon that this mainly matters to Apple fans, tech nerds, gamers, etc. If they want the best of the best, they’ll get an iPad, but if they want a useful tablet on the cheap, they’ll easily go for the Nexus 7. Add Google’s Apple TV competitor (the Nexus Q), and we could see some pretty good competition here. We’ll see what happens, but Google’s David (Nexus 7, Google Play, and the Nexus Q) is looking to at least give Apple’s Goliath a few paper cuts.

Check out the video preview of the Nexus 7 below for a closer look at the new device. Keep an eye out in the coming weeks for our full hands-on video reviews of the Google Nexus 7, and in the meantime sell your Kindle Fire for some fast cash at MaxBack.com!