Why did Sony make the 12GB PS3?

With all the updates and installs, the original PS3 models (40GB, 60GB etc) did not have enough space, so Sony made the slim and super slim models with more HDD space, and then they released the 12GB system, which has so little space, that games like GTA V can't be installed with all the updates.
So why did Sony make the 12GB PS3? it sucks nowadays that the only PS3's in production are 12GB and 500GB systems, there is no middle ground for a cheaper price.

I think they made it to compete with the 4GB xbox 360. They also made it for people who want to upgrade their hard drive or for people who can't afford the 500GB model.

Realistically there is no reason for sku with a bigger drive since you can just upgrade for cheaper then a 500GB sku costs.

I have a few friends that own a ps3 that only play fifa on it. That system is perfect for them.

I think its aimed for the casual gamer that doesn't buy a lot of games.

12gb PS3's are cheap and you can change the hard drive however you please anyway. If you already have a spare hard drive laying around, the 12gb is easily the best value option available.

They are pretty close to useless.

@Shmiity: It contradicts the fact that they are trying to get everybody to go digital. like they say history repeats itself.