I see OP does´not understand how prices and the market works, before posting things like this you should do some research so you don´t get embarrassed, no offence, let me explain you why this make sense, before you go read what those Gaf idiots are saying since most of them are probably 18s years old talking shit out of their mouth.

Here is how things work on business:

You have a Console, it sells well and all but you can make another one, smaller and less expensive to make, sell it for less and profit more in each unit. what do you do? Of course you do a new one, less expensive to make and cheaper to sell.

This is what Sony is doing, they are going into 14 or 16nm from AMD APU (i guess) wich is logical cheaper to produce, therefore they can sell this thing for way less, take back UHD and HDMI 2.0 and this thing likely costs less then 200$ to produce, so what you will see is a cheaper (249e/299e) Console that will do insane profits for Sony and sell even better than the OG Ps4.

If you want a Premium product with a premium (Expensive) feels, looks and specs you show wait for Neo, that thing will look premium compared to this and will output at 4K UHD across the board aswell record game clips at 1080p 60fps. And yes it will look more premium than the OG Ps4 but as i said,that comes with a price, you don´t buy a Ferrari with the same money you buy a Fiat, they are different publics, different people, here is the same, both consoles are for different audiences, PS4 Slim is for the mass market (Hundreds of milions) and Neo is for the Core markets (Very low numbers of people, let´s say 30m MAX and i´m pushing it).

I just have to sit back and laugh...
Microsoft has been praised for launching their Xbox Slim.
Sony, meanwhile, who HAS BEEN LAUNCHING SLIMS FOR EVERY ITERATION OF THE PLAYSTATION FOR DECADES NOW gets questioned, ridiculed, and criticized.

People are funny. It's very simple. If you don't like or don't want a slim model, don't get one. Otherwise, this is just another option Sony is putting out there. And at this point, we don't know for sure 100% if this comes with more power or not. Let's just wait for official word from them.

I thought Neo was the slim but I guess Sony saw sense into releasing a dirt cheap entry model alongside. It seems they are serious about keeping the base model for the rest of the gen and there will be a next gen.
But it probably also means that the Neo will be at least full launch price.

Regardless of what we think on the internet, We're well passed the point of the slim affecting us. The mass market is the target audience here and the Neo is what Sony want us nerds to get excited about.

Yh we know. Sony is stupid. And everyone in the world that wants, can or would have bought a PS4 already has one.

What sense does a cheaper console make?

Maybe they consider a price drop

I really don't see why anyone has a problem with the new Slim model coming. It's just going to be a cheaper and smaller console. It's going to be a slightly better option for the people who haven't bought a PS4 yet and it shouldn't be detrimental to the people who have already bought one since it's not a big enough upgrade so that they feel cheated from buying early. They have done it for each of their previous consoles, so it's not anything new.

You really should start using qualifiers like "in my opinion" or "i believe that" when making claims like these. Someone less informed might think you're stating facts there

1. Production cost effective
2. Appeal to the market (people like new models etc..)
3. Usually slim models are also more (slightly) energy efficient
4. Maybe it can also play 4K blu rays as well.

There are more reasons to want a slim model than to not want one.