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 the 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.

P.S. It's worth noting that Sony has consistently stated that the PS3 will only break-even when both the Cell and RSX chips have shrunk.

Update: Reader Yaddam205 just reminded us about the "Slim PS3" redesign rumored for release in Autumn. No guarantees but smaller, less power-hungry, and cooler running chips would certainly be at the foundation of such a rig.

[AJ in the East Bay @ Apr 21st 2008 2:11AM]

Yay!...NOT!!

[Yossarian @ Apr 21st 2008 2:25AM]

Why not? Sounds like a win-win situation to me. Sony gets their money and we get reasonably-sized PS3s.

[RCL1221 @ Apr 21st 2008 2:33AM]

The real question... does this mean cheaper prices to the consumer?

$329 price-point?

[vypergts @ Apr 21st 2008 9:09AM]

Yay for PS3 Christmas presents.

[Cunthor @ Apr 21st 2008 2:14AM]

I might actually get one if this is true, I find current PS3 is a little too fat my taste. Would this also make it run cooler?

[Kizorblade @ Apr 21st 2008 8:09AM]

Yes.

[FrankTheCrank @ Apr 21st 2008 9:05AM]

I don't buy that they're ready to release a newly redesigned "slim" PS3.

It's too early in the products life cycle. They usually wait a little longer before they start redesigning the look of a system.

Not saying in can't happen. But I don't remember the PS2 getting a redesign till about 4 years into it's life.

[bricksoz @ Apr 21st 2008 9:12AM]

Too fat? Too shiny? Too black? I'm not trying to be an ass but I can't believe these are actual reasons why people haven't bought a PS3 yet. I play mine, not stare at it.

[yaddam205 @ Apr 21st 2008 2:14AM]

This would encourage the rumor of the "Slim PS3"

http://www.joystiq.com/2008/02/01/rumor-ps3-slim-coming-this-fall/

Hope so.

[Chebwa @ Apr 21st 2008 2:32AM]

I get the feeling that smaller chips wouldn't translate to a smaller PS3.

[yaddam205 @ Apr 21st 2008 2:38AM]

Why not? Less Heat, More appealing, and makes sense.

[Chebwa @ Apr 21st 2008 2:40AM]

Too much effort on their part and too early in the lifecycle of the console.

Microsoft didn't shrink the 360 when they put out new chips, I don't think Sony will either. Not for a while yet.

[Geir E @ Apr 21st 2008 2:54AM]

Ofcourse Microsoft did no change, they are primarily a software company. Sony on the other hand is a hardware company that have a record of doing so. To mention PSone, PStwo, PSP Slim just to take the nearest family. Or take the Sony Alpha series. They took over the camera line from Minolta, but the first thing they did was to take it apart and streamline it so it was made more cost effective.

But it is fairly early in the consoles lifespan to be shrinked down, but it would be amazing if they did so.

[Funke, Tobias Dr. @ Apr 21st 2008 3:48AM]

Why I think shrinkage is imminent:

1. With the new chips, the size of the heatsink and cooling apparatus will drop with the decreased need for cooling. This means reduced materials cost and reduced volume inside the case.
http://www.dailytech.com/article.aspx?newsid=4908 (PS3 disssection)

2. Any decrease in the dimensions will allow smaller packaging that will lead to lower transportation/warehousing costs which benefits Sony and retailers.

3. Sony has a history of dropping components when possible to reduce the cost per device. (Dropping of the Emotion Engine chip in the PS3 and constant redesigns of the PS2 for cost cutting.)

4. The bulk of the PS3 is one of its most undesirable qualities.

Everybody wins with a smaller PS3. I don't see any reason for Sony not to do this as soon as possible.

I'd love a slimmer PS3, but I can't stand to part with my Emotion Engine.

[Davedrastic @ Apr 21st 2008 5:01AM]

My inital thought to having a smaller PS3 was that it wouldn't happen so soon, but actually although a revised size would be (much) faster than previous size changes (PS1, PS2), it doesn't mean that it won't happen. If they can do it, they would wouldn't they? As someone said, that IS what Sony does, make their units more streamlined internally and externally and we all know that with electronics small is beautiful. Maybe a size change could give the PS3 the sales boost it needs to close the gap on the Wii and differentiate it from the 360. It's not as if Sony have been slow to release new SKUs' this generation. I know the size of the Wii was one of the reasons I bought it, I just figured why not, it's not taking up much space, and I'd love to have a slim PS3 without having to wait years to get it.

[CarpeD1em500 @ Apr 21st 2008 7:13AM]

"Ofcourse Microsoft did no change, they are primarily a software company. Sony on the other hand is a hardware company that have a record of doing so. To mention PSone, PStwo, PSP Slim just to take the nearest family. Or take the Sony Alpha series. They took over the camera line from Minolta, but the first thing they did was to take it apart and streamline it so it was made more cost effective.
"

These are the comments that make my morning...lmao - well OF COURSE Microsoft isn't trying to win the console war...they're a SOFTWARE company! Now it all makes sense...

You're so ignorant - it's highly amusing though. I'll rate you up anyways...

[Josh @ Apr 24th 2008 12:33AM]

"These are the comments that make my morning...lmao - well OF COURSE Microsoft isn't trying to win the console war...they're a SOFTWARE company! Now it all makes sense..."

He never said MS isn't trying to win the console war... hes just stating that Sony is a better hardware company and likes to redesign their products whenever possible... so stop putting words into peoples mouths... k thanks bye

[Chebwa @ Apr 21st 2008 12:56PM]

"Why I think shrinkage is imminent"

hehe

cheap lolz

[Gaz @ Apr 21st 2008 1:38PM]

Chebwa is a cute emo, he knows all about that kinda stuff :P

[Moonbright @ Apr 22nd 2008 6:31AM]

Slim?I don't think that's a good idea to the consumer.If they want the next generaiton PlayStation instead of the PS3,Slim that in reason.So,it's fun~~

[Tony @ Apr 21st 2008 2:35AM]

After hitting the read link, I don't see anything relevant to the PS3 getting new chips...

[yaddam205 @ Apr 21st 2008 2:41AM]

"Part cost is advanced, furthermore preparation of the new model which is reduced as for the same model"

[Tony @ Apr 21st 2008 2:46AM]

Sorry, maybe I'm not seeing it, but what does that have to do with chips?

[Funke, Tobias Dr. @ Apr 21st 2008 3:27AM]

You're just not thinking fourth-dimensionally!

[sockatume @ Apr 21st 2008 3:29AM]

There's nothing in it about new chips. That's all Engadget.

I'm not sure why they think that the new PS3 might switch to a 65nm Cell, considering that they've linked to their own story about how the PS3 has already switched to a 65nm Cell.

[Thomas Ricker @ Apr 21st 2008 4:32AM]

Actually, it's not "all Engadget"

Our Japanese colleagues who monitor Sony's financial calls have documented Sony saying *twice* that the PS3 will "break even" only after both the Cell and RSX chips have shrunk. As such, our speculation on the mattery isn't just coming out of left field.

http://japanese.engadget.com/2007/07/26/sony-ps3-financial-qa/

http://japanese.engadget.com/2008/01/31/sony-3q%5Eresult/

Thomas

[SuperDre @ Apr 21st 2008 4:33AM]

@sockatume: The current (40GB) PS3's already have the 65nm Cell, it's the 45nm Cell's I guess they are talking about.. And I guess we euro's get the new slimline only by the end of the year, instead of being the first ones since we already got screwed by Sony with having only the 40GB version...

[sockatume @ Apr 21st 2008 6:53AM]

Thomas Ricker : I can only chalk this up to not reading the story properly and apologise.

[kyle allen @ Apr 21st 2008 3:28AM]

im still waiting till i see one at goodwill for $20

[Ethan @ Apr 21st 2008 3:34AM]

Some rather rubbish journalists got a Sony PR man drunk and that came out more as a desperate brag than anything. I'm going to put my chips down on the "no slim ps3" side.

[DiscoCat5 @ Apr 21st 2008 3:35AM]

either way if any of these rumours are right or not......
PS3>360 in 2008 and beyond.

[Zorque @ Apr 21st 2008 3:46AM]

Yeeahhh... the thing about that is, basically the only thing coming out for it worth waiting for is MGS3 and a few games that'll be better on 360 anyway (like exclusive downloadable content for GTA4).

[Zorque @ Apr 21st 2008 3:47AM]

Dammit, that should have been MGS4, although I guess they are technically re-releasing the MGS series for PS2. Not that the PS3 has any kind of usable backwards-compatability anyway.

[BobTurbo @ Apr 21st 2008 4:35AM]

You keep telling yourself that Zorque ;)

[Zeus.:God @ Apr 21st 2008 10:33AM]

Zorque does have a point... Sorta'. PS3's lineup is going to be "ok". Its not fantastic (especially with my taste in games), but it certainly is a start towards a better lineup.

Still though, the 360 has the lead for at least a while (most of '08).

[Zorque @ Apr 21st 2008 11:56AM]

I guess I will keep telling myself that, because it's true. Whoo, here comes another crappy racing game, better blow $400 on a system to play it!

[Gaz @ Apr 21st 2008 1:49PM]

Ermm don't forget the PS3 can also be used as a computer running Linux, high definition video player and for games, some say it also runs alot quieter than the 360 thats quite alot for a $400 machine!

[M0les @ Apr 21st 2008 3:37AM]

"release in Autumn"? - WTF it's Autumn NOW! (at least in this hemisphere).

I've always said I'll wait for the slimmer/smaller/cooler model before I'll consider buying one (worked for the PS2 purchase).

[nxtiak @ Apr 21st 2008 4:02AM]

Great PS3v2 comes out after MGS4, which is when I'm going to buy a PS3

[swingin' dick hero @ Apr 21st 2008 4:51AM]

That's probably part of the strategy, MGS4 is a great way to clear stocks of the fatty PS3.

[Gaz @ Apr 21st 2008 4:44AM]

Grrr! Everytime I think the time is right to buy a console, some redisign get rumored and makes me wait! I still am jealous of all the guys who jumped on the DS after the redesign of the DSLite, my DS is ugly as hell!

[Calagan @ Apr 21st 2008 4:48AM]

I just hope they won't shrink the HDD below its current already-ridiculous size.

[jonyb @ Apr 21st 2008 6:29AM]

no i don't think HDD size will shrink, overtime the physical size of HDD will shrink while the memory will increase, i.e the IPOD.

[DrXym @ Apr 21st 2008 5:11AM]

It's obvious that Sony are AGGRESSIVELY working for a smaller design. The White PS has a mainboard which is about 2/3 the size of that in the older models. A slim is quite feasible, especially if they're about to cut the die size down to 45nm.

[Patriks7 @ Apr 21st 2008 5:17AM]

hey
im planning on buying a ps3 soonish and im wondering which one to buy and if there is a bundle really worth waiting for (like will there be a GTA 4 bundle or something?)
i live in europe btw if there are different bundles available
thanks

[jonyb @ Apr 21st 2008 6:26AM]

With this move imminent i dont believe you should buy now, unless you dont have a 360 and is very desperate to play GTA IV. This move by Sony is just what i'm waiting for, i have always believed that PS3 is the superior machine but so far the price is just way too high, once the PS3 become cheaper and finger crossed slimmer its the first thing ima spend with my paycheck.

[Patriks7 @ Apr 21st 2008 12:32PM]

i currently have no consoles what so ever thats why im looking for one
price doesnt really matter to me but id like to buy one beginning of june because i am leaving away for the summer for 3 months and i want to bring some gaming machine with me
i live in europe btw if that makes a difference in the bundles
thanks

[jonyb @ Apr 21st 2008 6:24AM]

look us gamers cant lose here, Sony innovating smaller chips with less heat and less cost can only mean a cheaper retail price. It makes sense for them to do this, Technology costs shrink overtime, as the chips become smaller n cheaper they can sell at a lower price. It's a win-win situation, they get more money, we get to buy at a cheaper retail price.

[Kspraydad @ Apr 21st 2008 8:59AM]

The slimmer version of products seem to take off in Japan so I think it behoves SONY to slim down the PS3 asap.

[Papa Midnight @ Apr 21st 2008 10:27AM]

How about the return of the Emotion Engine chip while we're at it?