PS3 Moving To Smaller, Cheaper Chip

Yes, last night, SCEE boss David Reeves made a silly boxing analogy. But he also said some other stuff. Namely, about how the PS3 will, later this year, start using smaller, cheaper Cell chips.

The Cell being, of course, the thing that runs the PS3. The Cell currently residing in retail PlayStation 3 consoles is a 65 nanometre one, but will soon - as we already know - be replaced by a 45 nanometre chip. But how soon? Reeves says the replacement will take place "probably in middle of the year".

A 45nm chip means the PS3 will use less power. It also means the machine will run cooler. And finally - and most importantly - it'll be cheaper to manufacture. Up til now, every time Sony have reduced production costs on the machine, they've pocketed the extra change.

But by the middle of next year? They'll need a price cut by then, and this is probably just the thing to enable such a move.

'We simply have to suffer,' says Sony Europe's gaming chief [The Guardian]