Because if it ties together with a price cut, PS3 may close the gap between itself and the competition. This is an exciting concept.

lol we have a winner

The slim model is not going to close the gap.  I don't think people realize the insane amount of sales the PS3 would have to have on a monthly basis from here to the end of the year to close the gap.  Statistically speaking, they probably won't even do it in 2010.

I would have to strongly disagree... Yes, a die shrink of the cell nets more processors per wafer and a lower cost, but a complete redesign and a shrink is expensive.  It pays off more in the long run but miniaturization of existing technology is pretty much always MORE expensive in the short run unless the materials that are being saved are precious.  I don't think plastic is that pricey, lol.  I would think the redesign to a slim would STOP a pricecut from happening until they recoup the redesign costs and then we would see a price cut... 

LOL. I think you are completely wrong. Tell me... how did Sony save 420 dollars per Ps3 already? I'll give you a clue. It has to do with removing Ps2 BC and shrinking the chips.

Right you are.  And they could continue to enjoy the lower cost if they just left the current design alone.  The redesign cost money.  Lots of it to do it right and not have a MS-esque RROD adventure.

Where (via a link) did you get a reduction of cost of $420 for the PS3?  If that is the case, what is your starting point and what are you saying it costs to now make one?  Again, links please.

kn - isupply estimated it at 840 to begin. Sony in may said they lose 10% per ps3 sold. 10% would mean it would be about 420. 840 - 420 = 420. And the R&D is most likely already paid off. It's ridiculous to think that Sony isn't doing this for the long run.

10% of $400 is $20?

Desperation.

n.

1. The condition of being desperate.
2. Recklessness arising from despair.

10% of 400 = 40... are you a prodigy of the US public school system?