Nintendo will drastically cut the price of 3DS from $250 to $170, it said on Thursday following lower-than-expected sales of the glasses-free 3-D handheld game machine.

The announcement of the lower price for the struggling 3DS was timed to the company’s announcement of its financial results for the April-June quarter, in which it reported an operating loss of ¥37,712 million (about $485 million). Nintendo said Thursday that it has only sold 830,000 units of Nintendo 3DS in America since it launched in March.

“While it has happened in the past that a game system would be reduced in price in order to increase sales, it has never happened in Nintendo’s history that a console would be reduced in price so drastically and after less than six months,” said Nintendo president Satoru Iwata in a statement on the company’s Japanese web site.

In Japan, the cost of the system will be reduced from ¥25,000 ($321) to ¥15,000 ($193). The new prices will take effect around August 12, Nintendo said.

Nintendo said it would attempt to reward early adopters who ponied up $250 for the 3DS over the last few months. It announced that it will bring downloadable versions of Nintendo Entertainment System classic games to the 3DS eShop and give 3DS owners 10 of them for free beginning September 1.

The games will include Super Mario Bros., Donkey Kong Jr., Ice Climber, The Legend of Zelda, Balloon Fight and five more. These will be made available to other 3DS owners at a later date.

Additionally, Nintendo said it would give Nintendo 3DS early adopters 10 free downloads of Game Boy Advance games: Yoshi’s Island: Super Mario Advance 3, Mario Kart: Super Circuit, Metroid Fusion, WarioWare, Inc.: Mega Microgame$, Mario vs. Donkey Kong and five more. Nintendo says it has no plans to release these games to the general public at any time, so only those who buy Nintendo 3DS before August 12 can download them.

The massive price drop is a direct reaction to the slow adoption rate of 3DS. Nintendo first noted in April that the new machine was selling at a slower-than-expected rate since its launch in Japan in February of this year.

Last week, game publisher Sega delayed two of its upcoming 3DS games. It did not give an official reason for the delay, but one of the games’ developers said in an interview that it was because of the lack of sales of the system.

Earlier this week, reports indicated that Konami’s upcoming Metal Gear Solid game for the 3DS had also been pushed back to 2012.

Additionally, publisher Capcom recently pulled the plug entirely on its planned 3DS game Mega Man Legends 3.

Nintendo reaffirmed that its own major software would indeed be released this year, although it is cutting it a little close. Super Mario 3D Land will be released in November, Mario Kart 7 will be released in December and Kid Icarus: Uprising will be released at some point during the holiday season.

It remains to be seen whether the new price can help Nintendo fend off the increasing popularity of portable games on smartphones and tablets. Moreover, it remains to be seen what competitor Sony may do: It said at E3 this year that its upcoming PlayStation Vita hardware would cost $300 or $250 depending on features.