Today Nintendo of America officially announced a drastic price cut on the new Nintendo 3DS. As of August 12th the Nintendo 3DS will now sell for $169. This news comes just 5 months after the launch of the system in the North America. The internet spin machine is in full effect. Some people believe the system is in trouble. While others smartly recall a similar price cut on the original Nintendo DS system. So what is the real story? Is this a case of retail panic or is Nintendo playing an aggressive strategy against their strongest competitor? Is Nintendo setting a retail trap?