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The Cell processor at 90nm as it exists in current PS3s
PlayStation 3 chip shrunken to lower costs

IBM announced today that the company has begun producing a new, 65-nanometer version of the Cell Broadband Engine at IBM's state-of-the-art East Fishkill, New York microchip production facility.

Cell processors found in current Sony PlayStation 3 consoles and IBM BladeCenter servers are manufactured on a 90-nanometer process. Shrinking a chip’s die allows more processors to be produced per wafer, a key factor in driving down production costs.

Sony is desperately trying to reduce the costs of its PlayStation 3, as each console is still being sold below cost of manufacture. iSuppli estimates that each Cell chip costs Sony $89, more than a tenth of the entire bill of materials for the PlayStation 3. The shift to 65-nanometer would significantly reduce the cost of the Cell processor.

Aside from costs, other advantages of moving to a smaller process include lower power consumption needs, less heat production—both of which potentially leading to more reliable systems.

Moving to 65-nanometer is just another method for Sony to cost reduce its console. Last month, Sony announced that its European PlayStation 3 consoles will ship without the Emotion Engine chip, a component used for backwards compatibility with PlayStation 2 games, in an effort to save $27 in material costs.



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RE: Cell
By tuteja1986 on 3/13/2007 7:20:08 AM , Rating: 0
In Australia , UK and Europe they make no loose by making user pay $800USDish for a PS3 and they will be selling that model with out Emotion processor which saves them a few buy. They should me making around $30 profit on each PS3 sold in Australia , UK and Europe.


RE: Cell
By Zandros on 3/13/2007 12:05:54 PM , Rating: 2
Obviously, since the EU do not employ any custom duties or taxes at all... remove the standard 17,5% VAT from that. Do they still make a profit?

By the way, it's "loss".


RE: Cell
By ghost101 on 3/13/2007 12:10:24 PM , Rating: 2
Well you're completely wrong because youve ignored tax which is ~15% in most of europe and 17.5% in the UK.


RE: Cell
By peternelson on 3/13/2007 5:31:32 PM , Rating: 2
Yes UK has 17.5% VAT and maybe some import duty, but American states AFAIK have sales taxes too of maybe 8%?

Actually the price we're paying (depending on exchange rate) was £425GBP or more which was around $840 US recently.

The extra $40 therefore offsets the difference in tax rates.

Certainly selling (or overcharging customers) in Europe is more profitable than selling them in USA.


RE: Cell
By NainoKami on 3/13/2007 6:18:08 PM , Rating: 2
25% in Denmark, FYI.


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