So, the PlayStation 4 Slim is real, and Digital Foundry made a video to prove it. Then lawyers got involved, and the hastily recorded clip got removed – you know how it goes. Still, this has all happened rather fast, hasn't it? If you'd have asked us on Sunday morning whether Sony would make a more compact PS4 console, we'd have told you no – why would it waste time on that with the PS4K (or Neo) around the corner? We were wrong.

Having had time to ruminate on the surprise release, we reckon that we understand what the Japanese giant's trying to do: it wants to dominate the low-end of the market and the premium space at the same time. Consider a traditional console cycle: the system releases at a high price, and then progressively gets cheaper. At launch, the hardcore jump on board, acting as early adopters. Then, as the system matures, price cuts are made to tempt more casual consumers to hop on board.

Along the way there's usually a slim revision, designed to cut costs. And that's what the PS4 Slim is: it's a cheaper version of the existing console, and – if you ask us this author – it shows. But why introduce it now, with the Neo purportedly about to be revealed as well? Well, we think that the platform holder's trying to have its cake and eat it by introducing two devices that cater to different sectors of the market at the same time.

Sony wants to dominate the low-end of the market and the premium space at the same time

Let's look at it another way: the PS4K, we assume, has been designed with upgraders in mind. From what we know, it's going to offer improved experiences for hardcore gamers: better framerates, higher resolutions, and presumably 4K Blu-ray. Basically, it's going to do the kinds of things that excite tech-heads. Unlike a traditional slim revision, there's going to be a real reason for early adopters to, well, adopt early all over again.

The slim, meanwhile – as has always been par for the course for these kind of refreshes – has probably not been designed with upgraders in mind. More likely, the diminutive device will fulfil the role of an entry point; it's for people who are yet to purchase a PS4, but want to hop on board for the best possible price. Cheaper components and a smaller product portfolio will enable Sony to cut costs, and those savings should be passed on to consumers.

So, what you end up with is two new products that completely reinvigorate the PS4 brand; a high-end model that appeals to the hardcore gamers, and a low-end model that serves as an entry point for newcomers and casual gamers. And in the middle you have the people who already own a PS4 and aren't interested in upgraded; for those of you, the introduction of a new standard unit means you're not going to be left behind any time soon.

It's a bold tactic, and it obviously remains to be seen whether Sony can pull it off, but the end goal will be to increase its install base, maximise engagement, and keep that all-important PlayStation Plus cash rolling. If it's successful, this move – along with PlayStation VR – will give the entire PS4 product line a new lease of life, and already three years into the cycle, that's pretty unprecedented. Of course, the real challenge, as alluded, will be ensuring that every consumer understands what it's trying to do.

Are you surprised by Sony's decision to introduce a PS4 Slim console? Are you enticed by the smaller form factor, or are you waiting for Neo news? Are you uninterested in all these new hardware initiatives? Shrink yourself down in the comments section below.

[source bit.ly]