PS3 to get smaller Cell and/or RSX chips in August? Slim ps3 on the way

[Linktothepast]

Here is the article by Engaget:
PS3 to get smaller Cell and/or RSX chips in August? - Engadget

Nikko Citigroup upgraded its rating on Sony this morning in anticipation of it breaking even on PS3 costs earlier than expected. At the moment, Sony sells the PS3 at a loss. The respected group of analysts is now earmarking August as the milestone month. Sony's CFO recently suggested that the move would occur in the second half of the year -- a date analysts then pegged at November. No details behind the new upbeat expectations were provided by Nikko CG. However, it's safe to assume that the PS3's break-even event will be realized by a switch to a sub-65nm cell processor, sub-90nm RSX graphics chip, or both, since the smaller chips are less-costly to manufacturer.

P.S. It's worth noting that Sony has consistently stated that the PS3 will only break-even when both the Cell and RSX chips have shrunk.

Update: Reader Yaddam205 just reminded us about the "Slim PS3" redesign rumored for release in Autumn. No guarantees but smaller, less power-hungry, and cooler running chips would certainly be at the foundation of such a rig.

Probably speculations, but if that happens a slimmer and more energy efficient PS3 would be quite a sexy device don't you think ?

[Hard core Rikki]

Probably speculations, but if that happens a slimmer and more energy efficient PS3 would be quite a sexy device don't you think

Not sexier if tghey dare ask for more $$$ (or even, not reduce prices), in exchange for that 'extra convenience'

[Fadingz]

PSP size PS3 would be great
I wouldn't mind external screen and blueray drive if that is the case.

[ozzgx4]

Well a more energy efficient will be much better, but only as long as the price is not too high. But I have a feeling that it might be round-about the same price as the current PS3

[StriderVM]

Wait, I think doesn't make any sense... At least for me.

They say Sony makes a loss for any PS3 bought, then it says they will be closer to getting even, then create a 65nm cell, which I think is even more expensive, where will those chips come from?

[PCXL-Fan]

It'll mean Sony won't have to lose as much money for each console sold, and maybe just maybe they'll be able to break even.

They probably aren't going to drop the price unless they feel they need to to compete against m$ and nintendo. They probably want to recover the money they've lost in their Sony Computer Entertainment subsidary.

[Thanakil]

Originally Posted by StriderVM

then create a 65nm cell, which I think is even more expensive, where will those chips come from?

"since the smaller chips are less-costly to manufacturer"
Using the smaller chip will make it easier for them to break even, since it'll cost them less.
So if they don't drop the price, it'll make it easier to break even instead of losing money.