Nintendo is slashing the price of the 3DS. Lacklustre sales have prompted them to reduce it to $169.99, a savings of $80.

The company had high hopes for the system but it's fallen far short of what they expected. Despite a stellar launch, sales of the 3D capable device have stalled.

The price cut, the largest one time cut in Nintendo's history, is intended to boost falling hardware sales. Profit forecasts have been cut by 82%, from 110 billion Yen to just 20 billion. As if going from bad to worse, competitor Sony's nearly seven year old PSP continues to outsell the 3DS. The PSP moved nearly 1.8 million units during the first quarter of this year. The 3DS only managed to sell 700,000.

Nintendo is hoping this major cut will attract more consumers to the system. At $250, it is the most expensive successor the the Gameboy by a wide margin. The iPod Touch and PSVita sell at the same price point and offer more features. Nintendo says the price cut will be effective August 12th, 2011. Current owners will be eligible for 20 free downloadable games.

Source: Joystiq