Amazon vs. Wal-Mart this Christmas

BENTONVILLE, Ark., Nov. 25 (UPI) -- Wal-Mart, the biggest U.S. retailer, and Amazon.com, the biggest online retailer, are entering the Christmas season locked in a price war.

The battle to offer the lowest prices has spread from a few best-selling books to DVDs and now to electronic items and video games, The New York Times reports.

Even the Easy-Bake Oven, a child's toy that is now 45 years old, has become a weapon, with Wal-Mart dropping its price to $17 and Amazon responding by slashing its price to $18.

"It's not about the prices of books and movies anymore; there is a bigger battle being fought," Fiona Dias, an executive at GSI Commerce, a manager of retail Web sites, told the Times. "The price sniping by Wal-Mart is part of a greater strategic plan. They are just not going to cede their business to Amazon."

Amazon's total sales at $20 billion are less than 5 percent of Wal-Mart's and most shoppers still buy in stores. But electronic commerce is growing quickly.