The parts used in the PS4 and Xbox One, more notably the PS4, Xbox has some clunky hardware decisions but the size of the box probably is what would make it possible anyway. lol
A console revision that's about 25% smaller uses less power ect, is extremely likely in the PS4's future. They chose wisely on the parts they used, allot of them can easily be made smaller already. There's even PC builds with stronger hardware but the same size as a PS4. It will be easy for Sony to make a PS4 Slim if a PC is already able to have the same form factor. They have an advantage that they can mass produce specific designs where-as PC is primarily through extensive modding. which is not ideal to bring size and costs down.
However, I doubt it will be as small as the PS2 got. I'd be impressed if they did get it that small in the next 2 or 3 years though. I have no doubt they can make a significantly smaller PS4 though. I do wonder if they will make a sku with no optical drive. I can see people adopting a digital only lifestyle for a 20-30 less USD price then a regular sku and it would also cut down on size.
Just my own opinion ramblings. :P
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