Earlier this week DailyTech reported that Sony was considering the sale of its Cell chip operations facilities to Toshiba. The Sony Cell processor is the brains inside the much-maligned PS3 gaming console.

CNN Money is now reporting that Sony has denied that the Cell chip manufacturing facilities are up for sale as was previously reported here at DailyTech. Toshiba Corporation spokesman Keisuke Omori told CNN Money that nothing has been decided on such a deal.

Sony shares fell 2.2 percent amid rumors of the possible sale of the chip manufacturing facilities to Toshiba due to expected losses Sony would incur. CNN quotes Sony spokesman Tomio Takizawa as saying, “Nothing concrete has been decided.”

The Nikkei, a Japanese business daily, first reported of the sale to Toshiba last week and claimed that a joint venture between Sony and Toshiba would be formed and existing manufacturing lines would still be used. It is widely known that Toshiba is seeking to strengthen its integrated chip business and the purchase of a viable line from Sony would make sense to many.

IBM has issued no comment on the rumored sale of the Sony Cell processor facilities. Sony and IBM collaborated to make the Cell processor, which is currently used in more devices than just the PS3. The Nikkei also reported that Sony would be the principal buyer of the Cell processor after the arrangement with Toshiba and would have a say in management of the joint venture.