The powerful Cell processor that is used in Sony’s PlayStation 3 console could experience a price cut in the future, as Sony aims to improve the chip’s profitability by moving on to the 45 nanometer process in favor of current 90- and 65-nanometer circuitry. Commercial production of this 45-nanometer Cell is slated for an early 2009 release, but will it be too late by that time for a price cut to boost Sony’s flagging console? After all, a smaller chip will result in the need for less cooling, which will ultimately slim down the console on the whole, very much like how the slim profile PS2 was released a couple of years ago.

Granted, the initial investment cost required to manufacture the 45-nanometer will be rather steep, leading to the suggestion that Sony might stop in-house production of the Cell processor and outsourcing it to other companies who can do a better job at a lower cost. So far, some of the candidates rattled off include Taiwan Semiconductor Manufacturing and United Microelectronics, the world’s top two contract chip makers by virtue of volume today.

Will there be a new Xbox by the time 2009 rolls around? After all, Sony has a 10 year plan for the PlayStation 3, and by the time 2009 is here, the new Xbox (if any) would have definitely surpassed Sony’s PS3 console in terms of specifications and raw processing power. Hopefully the folks at Sony will be able to pull their act together in time. Do you think a price cut in 2009 would be too late to plug all the leaks, or will consumers be okay with the current $599 price tag for the 60GB version?

Source: Reuters

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