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The only reason Sony is handling the core SKU transition the way it has been, is to minimize losses on hardware. They already stated pretty clearly that a return to profitability is their first priority; not market share. What that should mean is that they will continue to try and sell as many consoles as they can at current prices.

The only explanation is that they really wanted to avoid discounting any 40GB SKUs through an inventory clearing sale (as was the case with the 60GB SKU).

The only way to do this is by thinning out discontinued stock in distro channels prior to the release of an updated SKU, which means a drop in sales along with a drop in overall availability. No way around this.

Assuming there will be remaining 40GB stock in channels after the debut of the 80GB core, there will be some sales on these old units regardless, but the overall number of inventory clearing sales should be kept to a minimum (see priority one).

So why bother with the HDD upgrade at all?

- Easier to source 80GB HDDs at the same price or less, rather than have vendors continue to produce 40GB drives just for PS3s (same situation for the 360 and its antiquated 20GB drives).

- Unwillingness to drop prices on the core SKU, but willing to add perceived value to the current unit with more storage. Weak, but could also be seen as a simple progression in storage as the platform continues to rely more heavily upon HDD space.

- Emphasizes use of DLC, seeing as how Sony recently added the video store to the PSN store to generate revenue. That alone should have been enough to eliminate 40GB drives, which are barely large enough for game installs, preview videos and demos. Few consumers will actually upgrade their own drives.