Dixons has slashed the price of the Motorola Xoom tablet PC to £329.

The 10.1in tablet PC, which is available with Wi-Fi only or Wi-Fi and 3G versions, features an nVidia Tegra 2 dual core processor. The first tablet PC to run the Honeycomb version of Google Android, it has two digital cameras on board: a front-facing 2Mp camera acts as a webcam for video chat, and a 5Mp camera on the back is for photos and 720p high-definition video capture.

The touchscreen has a resolution of 1280x800 and users can watch 1080p HD video on the Xoom and output HD video to other devices via an HDMI slot. Adobe's Flash Player is also on board the Xoom, making it good for viewing web video.

Initially the Wi-Fi only version of the tablet PC was priced at £479.99 at launch in April this year, £20 cheaper than initially intended. However it's now been reduced by £150. Meanwhile, the 3G and Wi-Fi version is priced at £399, £200 less than the original asking price.