Japanese gaming firm Nintendo has slashed the price of its popular games console.

Nintendo has announced it is to cut the price of its popular Wii console by 20% in the US, following a similar price reduction in Japan earlier this year.

The cost of a Nintendo Wii console in the US will fall by $50 to $199.99 (£123.25) beginning 27 September 2009.

The news follows announcements made by rival firms Sony and Microsoft, who both recently slashed the prices of cost of their games consoles in the run up to Christmas.

The makers of the world’s most popular games system confirmed with the BBC that the trade price for a Wii would also drop in the UK and Republic of Ireland. However, the retail price would still be determined by the retailers themselves.

Earlier in the year, the Japanese firm raised the trade price of the console in the UK by £20, attributing the increase to the depreciation of the pound. It is currently on sale at £199 in the UK, although some retailers price them at £179.

The Wii is the most popular games console in the world with over 52 million units sold worldwide. It has outsold both Microsoft’s Xbox 360 and Sony PS3 games consoles.

However, sales are down this year. Between April and June, only 2.23 million units were sold globally compared with 5.17 million sold in the same time one year earlier.

The company hopes that the reduction in price will entice reticent gamers to purchase a Wii.

Cammie Dunaway, Executive Vice President of Sales and Marketing at Nintendo, said: “Our research shows there are 50 million Americans thinking about becoming gamers, and this more affordable price point and our vast array of new software mean many of them can now make the leap and find experiences that appeal to them, whatever their tastes or level of gaming experience.”