I am actually quite surprised that Sony did both ($100 price drop AND slim re-design) this early this generation. I previously believed they only needed the slim and a small price cut, or a $100 price cut, to be competitive in the market place again. Apparently the competitive and economic environments were exerting more pressure on Sony then I had estimated.
Obviously doing both has done a great job of increasing PS3 sales. I do agree however, that it is a valid point, to discuss if Sony possibly over-reacted to the market. Even if the Sony engineering wizards found a way to squeeze a small profit out of the slim (sounds unlikely, but possible) any increase in sales brought about by future Nintendo or Microsoft price cuts could lead to Sony chasing profitability and exisiting off of small margins the rest of this gen (to stay competitive price wise). Not an enviable position.
That being said, this is not a "SONY IS doomed" sentiment, but damn would I love to do a competitive analysis on Sony's position/reactions after this gen is over! Harvard Case Study material for sure!
