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PS5 hardware BC does mean that I'm skipping buying a PS4 entirely. I've been planning to wait until the PS4 was sufficiently cheap enough, but now I'm just going to wait until PS5 is cheap enough and pick up all the PS4 titles I missed out on.

That said, I think I agree that a PS4 base model (maybe a cheaper-to-produce PS4 Mini) will continue being sold at budget prices, while the high end production moves on to PS5. Fully agree that PS4 Pro's market will be 100% moving on.