Although the Kindle Fire itself is not old at all (released in November), it is rumored that the new version of the Kindle Fire will be released July 31st.
There is no information regarding specs and all of that good stuff, but the tablet from Google is expected to have a 1280 x 800 display, so if they want to compete they might have to have something better then that. Also, the Google device is rumored to be t $200, so cheaper then that, the new Kindle Fire will be a huge competitor.
Hopefully, they decide to up the screen res on the fire, which would make it an even more capable device.
Source: The Verge