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Matt Martin 11:23 (BST)
15/12/2008

Matt Martin

Zavvi drops Xbox 360 price to £98

Entertainment retailer Zavvi has dropped the price of the Xbox 360 Arcade unit to GBP 97.64 in the UK.

The chain, which is facing supply issues following the collapse of distribution business EUK, is also selling the Premium Xbox 360 for GBP 127.22 and the Elite 120GB unit for GBP 195.73.

PlayStation 3 hardware is also benefiting from a price cut and an additional reduction in VAT, now carrying a price tag of GBP 264.

The company has 125 stores in the UK, but is still unable to offer products via its website, and in-store staff have stopped selling gift cards to customers.

"Due to this ongoing situation we are currently unable to provide the high level of service we aim to deliver to our customers, and have temporarily suspended taking online orders until the supply situation is resolved," said the retailer of its ongoing supply problems.

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