Tesco matches Dixons in Playstation price war

Tesco, determined to take a healthy slice of the games market this Christmas, is cutting the price of the Sony Playstation to match high street electronics group Dixons.

Dixons responded to the supermarket chain’s earlier price cut on the games console to £69.99, by slashing a further £5 off the price, putting it at £64.99.

Tesco, however, is fighting back and said it will match Dixons’ £64.99 price on the Playstation until supplies run out. "We have literally got tens of thousands of consoles," a Tesco spokesperson told VNU Newswire.

Tesco confirmed that the supermarket chain had brought them in from unauthorised distributors in Europe’s grey market. "We have been using this channel for over two years on both clothes and electrical goods to bring our customers fantastic deals," the spokesman said.

Tesco said it is "fairly open on the promise it will not be beaten on price" and would consider cutting the console’s price tag further if Dixons chooses to retaliate. "Last Wednesday the Playstation was £79.99, we came in at £69.99 and now it is down to £64.99, that has got to be good news for consumers," said the Tesco spokesperson.

Dixons was unavailable for comment.

Tesco declined to comment on whether it plans to sell the Sega Dreamcast console which launches in the UK next month.

The Tesco Playstation offer is available at all of its 634 stores nationwide.