Price of computers fall to $199

CNET blogged that Circuit City is now offering a $198.99 back-to-school computer. Don't expect high-end performance, but it should be a good entry-level computer with an Intel 335 Celeron processor, 256MB RAM, 40GB HDD and DVD player. The PC once shipped for $649 but comes with $450 worth of rebates. Shipping is free if you buy it at the store.

CompUSA also promotes a $199 computer with a 17-inch monitor and printer. But you do have to take out a one year subscription with AOL.