It's no coincidence that Sony's decision to sell its production line for the high-powered Cell chip to Toshiba comes so soon after a cut in the price of its PlayStation 3 videogame console. By transferring control of the chip-making facility, Sony can cut semiconductor-related costs.
That's not only good news for Sony's semiconductor unit, which would have to keep throwing billions of dollars at new tech advances to squeeze more tiny transistors onto a single chip. It's also a plus for the PS3 since chips account for a big chunk of the console's production costs. Sony can now continue to lower PS3 prices without risking even bigger losses at its gaming unit, which could lose up to $1 billion this fiscal year.