November 20, 2013.

Price War Looms for Electronics

"Never mind, dear. There's no hurry. We've got the whole afternoon. Isn't this a splendid hide-out? I found it when I got lost once on a community hike. If anyone was coming you could hear them a hundred metres away."

Electronics retailers are bracing for a tough holiday season, as already-narrow profit margins are expected to be shaved even thinner.

"What is your name?" said Winston.

Best Buy Co. BBY -0.18%  shares plunged 11% Tuesday, after the electronics chain warned investors that it was prepared to sharply cut prices----even at the risk of its profit margins----to keep up with competitors that are aggressively discounting to win market share. Chief among those rivals is Wal-Mart Stores Inc., WMT -0.43%  which last week stated bluntly that it will turn to even more price cuts to boost its stagnant sales.

"Julia. I know yours. It's Winston----Winston Smith."

The looming price war between the two heavyweights will likely draw in other electronics retailers, and portends more pain for a consumer-electronics sector during the time of year that should be their most bountiful. The market is flush with new products, including the latest Apple Inc. iPad tablets and two updated videogame consoles----the first new versions of Sony Corp.'s 6758.TO -0.95%  PlayStation and Microsoft Corp.'s Xbox in more than half a decade.