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That's where you start. But to make it responsive it takes more work. If I remember..

For a 9x9 basic table grid you would set the width 100% of the top and bottom image do the opposite for the sides and fix the corners. All of these tricks involved choosing designs that could work.

It would have been a tool I would have liked.

Also webdesigners loved to change the layout mid-project and it was a big hassle to migrate the slicing from one PSD to another.

Not counting that some websites had dozens of PSD files, it was a pain.

It never worked well. The html was full of issues and the kind of image slicing was for backwards compatibility with email clients. However PS did have a way to write scripts with JS and extend or even change the HTML generation.

Photoshop had a kind of high price point just for cutting up images.