The PS3 Processor Has Been Shrunk. Cheaper PS3s will follow
The 45nm Cell will use about 40 percent less power than its 65nm predecessor, and its die area will be reduced by 34 percent. The greatly reduced power budget will cut down on the amount of active cooling required by the console, which in turn will make it cheaper to produce and more reliable (this means fewer warrantied returns). Also affecting Sony's per-unit cost is the reduction in overall die size. A smaller die means a smaller, cheaper package; it also means that yields will be better and that each chip will cost less overall.
All of these chip- and unit-level savings may or may not get passed on to gamers in the form of price cuts any time soon. It all depends on whether Sony wants to boost its margins and show a profit in its gaming unit, or attract new gamers to the console by lowering the price. Eventually, the cost savings will get passed on to users; it's just a question of when.
Read the whole article @ ARS Technica
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