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A lot of people are overlooking the key feature of the PS3 Slim, or the PS Two or the PS One.

They cost a lot less to produce.

And that is where the savings passed on to the consumer comes from. And that is where the overall larger pool of consumers buying these things comes from, and subsequent higher sales.

One of the biggest problems of the PS3 was not the form factor (a minority were put off by the size), but the cost of per unit production (the housing alone allegedly cost $60 initially).

The main reason for MS to completely redesign the chassis of the Xbox 360 would be if they could use significantly fewer parts in a case that uses less material (case, packing/shipping materials, etc.) allowing them to accommodate another price drop without it cutting into the slim profits they make on the $299 SKUs.

The thing is, the 360 chassis has always been inexpensive to produce, making it harder to significantly drop production costs on the case. A significantly redesigned logic board on the other hand, would have to be where the majority of cost saving took place.

End result could just be that MS puts a smaller, simplified logic board into the same inexpensive housing without going through a redesign process. That would allow them to keep the current designs of their clip on peripherals without having offer multiple SKUs for each for new and old consoles.