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PS3 to get smaller Cell and/or RSX chips in August?

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 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.

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engadget.com
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SUP3R3884d ago (Edited 3884d ago )

All signs point to price-cut.
I'm thinking the 299-349 range for the holidays.

sonarus3884d ago

They are about to break even, they will probably hold out for as long as they can but price cut this yr is very probable

yanikins1113884d ago (Edited 3884d ago )

Take these numbers for an example

Current ps3 manufacturing cost = 450
Current sale price = 400

New manufacturing cost = 350
New sale price can = 350 and still break even.

These numbers are made up off the top of my head but they are just to show a point. I think you will see a price cut to the ps3 and BR Players around the same time the new chips are implemented.

1) Sony need to stay at a competitive price point to compete with the 360. Yes the ps3 is much much better value (imo) but sony wont want the 360 hitting that pricing sweet spot while they are still in the stratosphere.

2) Im sure sony would have dropped prices slightly already, but i have a feeling the BRA or what ever its called want to recoupe some of the R&D losses suffered creating bluray before the prices come down. If sony make the ps3 too cheap, other BR players become un-viable and im sure this would really p!ss off some of sonys business partners. I wouldnt be suprised if there is a contract regulating the price that sony can charge for the ps3 for a certain amount of time.

All pure speculation BTW.

EDIT @ the shark guy below: Yeah numbers were just made up to show a point. Im in $AU anyway so to hell with the conversions....

EDIT2 : Cos its a slow news day.... disagree-er person wanna post a reason they disagreed? Im bored....

CrazzyMan3884d ago (Edited 3884d ago )

Cool! =)

Pricecut?
Definitely! =]

p.s. @yanikins111, since january i believe, there was news, where Sony representative said that ps3 cost for them less then 400$ to manufacture by that time. =)

Solid_Snake6663884d ago

nope never its already beating xbox so u they would be generous lowering it by even 50 dollars

yanikins1113884d ago

Until it surpasses total sales.

theKiller3884d ago (Edited 3884d ago )

so most probably it will be this fall when i buy a ps3 and i want to buy it at 300$ which i believe that also will happened in fall and also there is a good chance to see ps3 slim by this fall!!

i am not a fanboy and i can live without playing for weeks or even months sometimes, i loved my ps1 and ps2 but i never bought them in the first years of launch, also i dont wanna spent a lot of money on a console so the best thing to do is patience with me!!

i am thinking to buy 4 games in fall, so any ideas on what to get?? i have in mind 3 games already
shooter= killzone 2
racing = motorstrom 2
action = metal gear solid 4
so what should i get for the forth one? GTA4 or resistance 2 or hmm.. i dont know!

pharmd3884d ago

in all honesty, i would have GTA4 and Resistance 2 as sure things, if there were one i was questioning, and personally am questioning gettin its killzone 2.... i will get it down the line but not first day launch, i think R2 will be the best one to get at that time....

just my opinion tho

fenderputty3884d ago

that they want the stand alone Blu-Ray players to hit 299 by the end of the year. The usually keep the PS3 inline with the lower end BD player. Using these new chips makes this more of a reality.

Hopefully we will see another price cut soon.

theKiller3884d ago

thanks bro, bubble for u!

ruibing3884d ago

Only thing stopping a price cut in the US is the poor value of the USD. A price cut everywhere else would be pretty easy.

reccodog3884d ago

You may say that the PS3 hasn't beat the 360's sales, but the ps3 has sold more consoles than the 360 has on its first year.
Get my drift?

yanikins1113883d ago

But what im saying is, I assume devs look at install bases. Sure the ps3 might be seeling better, but the 360 does have a bigger instal base. Its just a fact of life for the moment.

Its like having a 2 car race, and your car stalls on the start line. You get it started after 2 minutes but the other guy laps you as you pull away from the start line. Now you have an 07 Skyline GTR (anyone with prologue, buy this beast), and he just has a Mini, so while you are catching him, and its a 50 lap race, you still are not winning until you pass your opposition. Add to this analogy, that the other car is overheating and belching smoke cos the guy pushed to hard on the first lap, and i really think it fits the situation.

+ Show (9) more repliesLast reply 3883d ago
R Kelly3884d ago

Perfect for the Ps3,I am!

shine13963884d ago

ironically you sound like a star wars character coming via soul calibur to the 360..he he!!

yanikins1113884d ago

Is that gonna be cross platform multi player? that would be wickid. Yoda Vs DV. I want it.

Bathyj3884d ago

Ummm didn't they announce the cost of making a PS3 had dropped from $800 to $400 about 3 or 4 months ago? They said it had halved I remember distinctly.

I believe Sony could cut price any time they want and I think they should do it on the 28th of April, giving M$ just one day to panic and follow suit less the console war be decided in the next 10 weeks.

Lumbo3884d ago

the original $800 was already made up by some random "analyst" , so you can guess the half number isn't any better in terms of reality. Sony has not so far released ANY figure about the manufacturing costs of the PS3 system. And it is unlikely they ever will .. such information is normally strictly confident.

marichuu3884d ago

The PS3 shouldn't cost what it does to begin with... The numbers of consoles being sold now only tell me (note: I said ME, meaning it's not a fact, just MY opinion) that it would outsell the 360 if they had the same price.

yanikins1113884d ago

I have no idea of the figures sony has to work with, nor their production capacity, but I wonder if it would be worth them undercutting or matching the Standard 360 price (i dont know what sku's and prices they have now). They would undoubtedly lose alot of money on hardware sales, but God.... the war would be over tomorrow imo. Of course i doubt they could keep up with production, and as of yet, while there are great games out, I dont think there are enough to make back the losses made on hardware. But the Charts would look cool. Hell they should match the Wii Price for a month and see what happens.

shine13963884d ago (Edited 3884d ago )

yeh...I heard that as well...and also they sold a cell making factory to toshiba...so this article could probably be a little misinformed...

Edit: been looking on the internet, and found this to be true...sony could be moving to even smaller chips, as in below 65, and that could mean the ps3 being even cheaper...I reckon this is around LBP time, to get in the families, leading up to chrismas...it might just be the must have item for chrismas...

rawg3884d ago (Edited 3884d ago )

Sony selling the Cell manufacturing plant to Toshiba is not that big a deal. Cell has always been a joint venture between Toshiba, Sony and IBM. The sale is part of Sony's strategy to move away from manufacturing to focus more on chip design.

That said, smaller chips would definitely reduce costs, not just in making the chips but all of the other components that would be impacted, i.e. less cooling, smaller power supply, consolidating other components, etc.

Add to that the fact that Blu-ray drives are going to be manufactured in higher volumes since the BR win, the overall cost of the PS3 could come down by a lot. Like you said, probably just in time for the holidays.

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