Sony, which is planning to downsize the Cell processor at the heart of the PlayStation 3 from 90 and 65-nanometer to 45nm by 2009, has announced that it’s going to downsize spending, and even move production of the chip out of house.
Sony executive deputy president Yutaka Nakagawa, told journalists today that, “When we first offered the PS2, there were no semiconductor companies that were able to make chips for the machine, so we did it ourselves. But now, there are companies that specialize in chip production.”†
This news comes as the company ends a three-year restructuring program aimed at cutting unprofitable divisions in order to increase the overall profit of the company. So far, 10,500 Sony staffers have 'left' the company and nine out of 11 factories have been shut down. With 500 more people due to 'seek new challenges' (or whatever their redundancies will be called) and two more factories to close by this March, today's announcement bears all the indications that fabrication of the Cell will indeed go out of house.
In short, if we’re going to see a PS3.1, then the chances are that it’s going to have a smaller form-factor, but that its heart will have been constructed by IBM! And we certainly will not be seeing it until 2009.
† Source:Reuters