Sony Computer Entertainment Japan has announced a deal with Toshiba and IBM to create and produce low-level microprocessors for Sony computer and electronic products.
This move, an addition to last year’s agreement between the three companies, is widely believed to be the seed that will grow into the PlayStation 3 over the next year or so.
"This agreement is the first one that allows the architects into the kitchen," said IBM research director Richard Doherty. "That's never ever happened before. Sony is the only customer big enough to make IBM change its ways."
The deal will see around 75 employees from both SCE and Toshiba relocate to IBM’s main research laboratories in New York, to co-develop the new chip, which has been codenamed ‘Cell’.
More on this as it develops.