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I think if they were planning to make a new model this makes more sense than making a slim. Making a slim would just put them in the same position as before, competing with smartphones and 3ds. Becoming a tablet gives it more reason to be bought (a tablet for gaming) where the only direct competitor is the very expensive Razor Naga. It would need a larger focus on apps, since people expect that from a tablet in general, so I think app dedicated ram makes sense.