Analysts: PlayStation 3 profitable by August, smaller chips likely

Sony is gunning for PS3 profitability this fiscal year – which, coincidentally, began this month – and it's hoping to get there by reducing the cost of key components, of course. The PS3's Cell CPU has already been shrunk from a big ol' 90nm to a relatively svelte 65nm, and there's an additional 45nm die-shrink in the works, which should be making its way to the PS3 "soon." A smaller Blu-ray laser could further erode the console's high cost. Notably absent from any speculation on cost reduction thus far: the system's 90nm RSX GPU.

Reputed Japanese financial services firm Nikko Citigroup upgraded its rating on Sony this morning, pointing out that the PS3 may cross over the profitability hurdle as early as this August. While Nikko CG didn't attribute this to a specific cost reduction, it's a safe assumption that a 45nm Cell CPU and a sub-90nm RSX GPU would be the key ingredients to a deliciously profitable PlayStation 3. Next step: that rumored PS3 slim. Start holding your breath ... now!

[Via Engadget]

This article was originally published on Joystiq.