Nikko Citigroup upgraded its rating on Sony's stock this morning, predicting it will break even on PS3 costs much earlier than expected. With a Blu-ray drive, Cell chip and RSX graphics technology, the PS3 is an incredibly expensive system to manufacture: one that Sony currently sells at a loss to customers.

Analysts are now predicting August will be when the smaller chips will be used in the PS3. There are no details as to why August has been chosen as the date, but switching over to a smaller Cell processor and RSX graphics chip will undoubtedly lower costs for the Japanese electronics giant.

[Via Engadget]

This article was originally published on Joystiq.

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