Nintendo has decided to cut the price of its Nintendo DS handheld games console by 21 per cent in Japan.
The price drop will bring the cost of a DS down to around 15,000 yen - significantly lower than its current price of 18,900 yen.
Nintendo also plans to reduce the cost of its DSi LL model by 10 per cent.
The company hopes its price cuts will boost sales and head off predictions of lower profits for 2010.
Eiji Maeda, an analyst at JPMorgan Chase & Co said: “This is the right move, considering that the DS is pricey for a handheld and the company wants to sell as many as possible before the next model arrives.”
Nintendo is expected to reduce the cost of its products overseas later in the year.
Nintendo is currently seeing its dominance of the games console market falter as new releases for Sony's Playstation 3 and Microsoft's Xbox begin to eat into its sizeable market share.