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Next Gen: Sony Could Offload PS3 Graphics Chip Factory

Sony is reportedly in discussions with Toshiba to sell off its PS3 graphics chip production facility in western Japan's Oita province.

The discussions form part of the platform holder's strategy to reduce costs at its semiconductor unit, reports Reuters, and follow on from Tuesday's announement of a new joint DRAM manufacturing venture between Sony and Infineon Technologies.

It is the second time Sony and Toshiba have been linked over the past month. In September Sony was said to be in negotiations with Toshiba concerning the sale of its manufacturing facilities in Nagasaki where microchips including the PS3's Cell microprocessor are produced.

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Bolts3704d ago

Unlike MS, Sony can't bleed money for very long. Sooner or later they're going to need to make a little cash and this is their way of achieving that goal. Plus cranking out silicons isn't one of Sony's strong suits.

MrTangent3704d ago

Like Fanboi said, this is just a way for Sony to recoup some losses. It's a good thing they're outsourcing some of their manufacturing as it will allow them to build PS3's cheaper, and in doing so, pass along the savings to the consumer.

Korosuke3704d ago

ready to withdraw from PS3 business ?

Lord Anubis3704d ago

Sony has discussed their buisness strategies in the past. Selling their fabs is done only if they will pay less then what they are actually cranking out. So if another company can produce cell or their graphics chip at a lower price much faster then they do, they would shut down their fabs. They want to sell their billion dollar lab to Toshiba which they actually created together, who knows if they will get more vendor for their tvs as I am certain Toshiba will start supplying their own tv line with cell processors and leave sony with only the weekly stock of PS3 chips.

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Marty83703704d ago

Sony can out source cheaper than making the chips themselves.

Salvadore3704d ago

What benefit does Sony receive from this?

Enigma_20993704d ago

Wasn't this already reported once?

DJ3704d ago

half a dozen times? IBM and Toshiba also produce Cell (and RSX uses similar fab lines). Either way, they're still responsible for building the PS3 and putting all the components together.