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theprof00 said:

Almost every gen, Sony does a mini version of their previous console.

Is that really the best they can do??

the reason we won't see any smaller versions is that shrinking the Cell is very expensive, a shrink of a highly complex chip like that probably costs several hundred million US$ if you factor in test-production and making up for initially decreased yields

with XDR ram PS3 has another architecture that pretty much isn't used anywhere and hence also didn't receive any shrinks > doesn't get cheaper to produce

I doubt Sony has anything like that in the works to release a redesigned/less expensive PS3, they probably rather increase their PSNow catalogue/capabilities