FYI, it has 8 GB of internal storage. Not going to store too many games, especially not if you also want to store books, music, etc. Price is certainly right, though. They are going to get sales.
Not that it has anything to do with playing games, but the Kindle Touch for $99 is "with special offers". It costs $139 to get one without special offers. I was bummed about that. Thought I was going to get my first Kindle now that it had hit below $100, and is smaller, but I really don't want ads. Guess I'm waiting for the next revision.