Zavvi is selling the Xbox 360 for under 100 for the first time in its history, MCV has learnt.
In a last-minute Christmas sale, the company has reduced the Arcade SKU to 99.99 – news which could kick off festive a hardware price war on the High Street.
The Premium 360 has been slashed to 149.99, whilst the Elite has been cut to 199.99 in the deal, which MCV understands will last up until Christmas Day.
The retailer has also cut the price of PS3 by 30 to 269.99.
Games in the retailer's sale include Gears Of War 2 and Pro Evolution Soccer, which have both been reduced to 29.99.
The last UK retailer to reduce the Xbox 360 to under 100 was Sainsbury's, which led GAME boss Lisa Morgan to instruct her staff to buy the consoles from the supermarket for resale.
A Zavvi spokesperson told MCV:
"Our organisation believes in giving our customers the best deal and service. We've put in place some great offers on Xbox hardware, giving customers the best value possible in the run up to Xmas. We appreciate how people's wallets are being tightened because of the economy."