£99 Xbox 360 at Zavvi

Gears 2 to be sold for only £19.99.

MCV reports that Zavvi has kicked off a last-minute Christmas sale in which it is cutting the price of many video game consoles and games.

The headline price cut sees the Xbox 360 Arcade being cut to only £99.99, a price which is expected to last until Christmas Day. Other cuts will see the 60GB Xbox 360 sold at £149.99, the Xbox 360 Elite at £199.99 and the 80GB PS3 for £269.99.

It's not just hardware seeing price cuts in the sale, with MCV reporting that Gears of War 2 will be on sale for only £19.99.

"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," said a Zavvi spokesperson. "We appreciate how people's wallets are being tightened because of the economy."

MCV predicts that Zavvi's aggressive price cuts could see its highstreet rivals follow suit in a pre-Christmas price war.