Following moves by rivals Sony and Microsoft, Nintendo plans to drop the price of its popular gaming console 20% to $199.

Sales of the unit have leveled recently, in line with a gaming market that has also seen a decline.

According to NPD, August sales of both hardward and video game titles dropped to $908.7 million from the same time last year.

Microsoft's core Xbox 360 and Sony's PS3 now both start at $299.

Microsoft also has the Xbox Arcade for under $200 while Sony is expected to drop its PS3 price even more later this year.

While the moves are expected to help boost console sales, video game titles are also critical.

Industry analysts cite a lack of release of new franchise titles as part of the problem. Even sales of the popular Madden NFL series are down this year.

Planned updates of hits like "Halo," "Guitar Hero" and "Call of Duty" are also expected to help sales.