PS3 Informer

Why do Some Predict the PS3 Slim Will Be Cheaper?

There is a persistent rumor, almost as persistent as speculation about the PS3 slim itself, that when the new slimmed-down console arrives it will be cheaper than the existing PS3. Like one of those grand, all-encompassing conspiracy theories that has the lizard people cavorting with the same guy who shot JFK, this rumor neatly ties together the rumored PS3 price drop on one side, and blurry photographs purporting to be the PS3 slim on the other. The argument goes that efficiencies won by combining components on the main board to accomplish the same processes with fewer parts makes production of the new device cheaper. This notion has been further fuelled by the fact that early leaked production pictures of the alleged PS3 Slim didn't look as shiny or well, expensive, as the current model in all of its chrome-encrusted glory.

leaked images from a Chinese factory apparently show the new PS3 Slim packaging.

The problem is that - as the PSP Go has shown us - smaller and cheaper rarely go together. Consider that when the Slimline PS2 originally launched in September of 2004 it cost $149 USD, the exact same price as the original model PS2 (which had been given a price drop before E3 that year to compete with the Xbox). Also at that time, there were already 72 million PS2 units in households all over the world, meaning that Sony saw it as an aesthetic improvement with functional upgrades rather than a way to drop the price of the core unit. Over time, the PS2 slimline retained its premium price, while the phat version was discounted in shops. If anything, we would expect that the introduction of a PS3 slim model would cause the price of existing stock to go down, but we are highly suspect of any price reduction in new hardware. Since Backwards Compatibility and a few USB ports were removed in the budget version, there really isn't anything left for Sony to cut from the existing configuration to make it cheaper. And no, unlike apartments and diamonds, processors do not get cheaper when they get smaller. This could be a major reason why Sony was reluctant to show off the PS3 slim hardware at E3, fearing that price, rather than size, remains the number one issue for consumers.

Holding out for a price cut on the PS3 phat makes sense, because it is rumored that Sony will be forced to lower the price sometime early this fall due to competitive pressure and to clear out stock in anticipation of the PS3 slim. But thinking that the thinner PS3 hardware will somehow combine aesthetic improvements and a smaller form factor with a lower price tag is purely delusional.

Have your own prediction about the PS3 Slim? Discuss it on our PS3 message boards!