Its common in electronics world to take something, make it cheaper to produce, smaller, quieter, use less power....
Works out well for those that wait to buy something this late in the game, they get the "best" version of the console with a massive back catalogue of cheap games.
Also to sell it cheaper.
Why don't they take their time and make them this small from the start? Instead of rushing out the fat ones and later streamlining them.
Again that not how it works. New processes and better hardware comes out. Can make changes farther down the line. You dont NEED to buy this if you already have one. It plays the same games but no backward capability. If anything it is smart by the company. Cheaper for them to make than the older ones. But still I see no need to RAISE the price.