PS3 Informer Writes:
"The problem is that - as the PSP Go has shown us - smaller and cheaper rarely go together. If anything, we would expect that the introduction of a PS3 slim model would cause the price of existing stock to go down, but we are highly suspect of any price reduction in new hardware. Since Backwards Compatibility and a few USB ports were removed in the budget version, there really isn't anything left for Sony to cut from the existing configuration to make it less expensive. And no, unlike apartments and diamonds, processors do not get cheaper when they get smaller. This could be a major reason why Sony was reluctant to show off the PS3 slim hardware at E3, fearing that price, rather than size, remains the number one issue for consumers."