Acer has dropped the prices of two of its netbook models hoping to capitalize on the impending back-to-school sales season in the U.S. The Windows XP loaded version with 1GB RAM and a 120GB hard drive will drop from about $399 to $349, while the Linux model with 512MB RAM and an 8GB SSD is going down from $379 to just $329.

In addition, Acer has announced an all-new Aspire One model sporting a long awaited six-cell battery, a 160GB hard drive and Windows XP Home for $399. The price-cutting move has been mirrored by HP, which is already offering reductions of up to $100 on some versions of their Mini-Note product. Hopefully, other big names in the netbook market such as Asustek and MSI will follow.