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Impulsivity said:
It also makes the console cheaper which hopefully leads to price cuts eventually. Smaller chip=less materials=less cost.

The chip (carrier) doesn't get smaller at all, only the die size is reduced by about 30%. Material costs is the wrong name for it, as the material cost (silicon wafer) itself is irrelevant, the number of dies per waver increases greatly which does lead to reduced chip prices, eventually.