I did initially expected to see a PSthree somewhere down the line, but then this is the first time Sony haven't been leading the race.

Considering the huge costs of re-tooling the PS3 factories to produce a new version of the machine, it's really only possible if it's financially viable. Maybe Sony have found a way to reduce production costs massively and turn that current $40 loss per console into $50 profit on a $300 machine.