AMD and Intel are going head to head in a price war which could see dual core processors drop below $100.

Sources within AMD say that prices are going to be slashed for its current line up and others inside Intel said that it will be following suit.

Discounts are expected to be about 20 percent on entry-level dual core products and up to 40 percent for high-end quad core processors.

There are concerns that AMD might hit a financial problem by trying to compete in terms of price.  Already the company is supposed to have been tapping the financial markets in a bid to raise cash for the cuts.