The new handheld console will play all games currently available on the DS and 3DS but without the 3D effects.
Nintendo announced the new console, which it hopes will attract those looking for a more affordable entry point into gaming.
The device will cost £109.99 (€128) in the UK and $130 - $40 less than the 3D version - in the US.
The console will launch in both markets on 12 October, the same day Pokemon X and Pokemon Y are released, and will be available in a choice of red and white or blue and black.
The new version of the console will come with dual screens and feature the same gameplay controls and touchscreen as the 3DS. There will also be wireless connectivity for online multiplayer gaming and access to the Japanese company’s eShop.
The announcement follows a price cut to the Wii U, which was slashed from $350 to $300 for the American market.
Reggie Fils-Aime, head of Nintendo America, said the moves put the company in a strong position ahead of the Christmas sales period.
"Nintendo has one of the strongest and most diverse video game lineups in our history," he said.
"Today we're making those unique Nintendo experiences more accessible and affordable. However you play and whatever you play, Nintendo has you covered."
Including the latest handset, Nintendo now offers three portable devices, with the 3DS and the larger 3DS XL also available.