Toys R Us gets into the tablet computer game with Tabeo

(CBS/AP) Toys R Us plans to launch its own tablet computer aimed at children called Tabeo on Oct. 21, a low-priced entry into the increasingly crowded tablet business.

The news comes ahead of the holiday season, which can account for up to 40 percent of retailers' annual sales. Toys R Us has focused on exclusive toys rather than discounts as it faces tough competition from online retailers like Amazon.com and discounters like Wal-Mart.

The 7-inch touchscreen tablet comes with 50 preinstalled apps selected for children, including games such as Angry Birds and Fruit Ninja, and a book app called istorybooks. It will retail for $149.99 and runs on Google's Android operating system.

The Tabeo tablet includes 4 gigabytes of storage, Wi-Fi connectivity, 7-inch multi-touch screen and front- and rear-facing cameras.

Toys R Us sells other electronics including Apple's iPad, but this is its first store-brand tablet. The Tabeo's main competitors include LeapFrog Enterprises' LeapPad and VTech's InnoTab.

Tabeo also faces competition from tablets like Amazon's 7-inch Kindle Fire HD and Google's Nexus 7 - both priced at about $199. Amazon announced its newest line of tablets last week, which offer family-friendly features that let parents set limits on usage.

In the privately held retailer's most recent quarter ended July 28, its net loss widened slightly from a year ago, hurt by weakness in Europe and a decline in video game sales.

The introduction hurt shares of LeapFrog, which fell 90 cents, or 9.8 percent, to $8.25 in morning trading Monday The stock had fallen 48 percent since the beginning of the year.

Toys R Us is now accepting pre-orders for the tablet.