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Sony Confirms PS5 Slim for This Holiday Season
(www.ign.com)
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At least for the US, the price increase is just for digital version. And honestly, I'm certain the old digital had a profit margin hit in comparison to the disc drive version. It was probably worth it to lock people out of discs. This version will have a disc drive attachment option, so they've just given up on their all-digital endeavor.
Aside from that, $50 for 175 GB SSD isn't a great value. The extra 175GB SSD is a significant increase. And for the disc version, that's purely an upgrade.