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FishyJoe said:
The reason it's too early is because you not only want new buyers to pickup an upgraded model, but existing owners as well. If it's released this year, none of the existing owners will want to upgrade because their existing units will still be quite new.

Very good point, never thought on that line.. but may be they can do size reduction twice in PS3 lifecycle..

Its important right now, as not only to increase sales in Japan but also to reduce manufacturing cost further..

and then after 3 more years they can get a slim version to make existing PS3 owners to upgrade...