Sony's Kaz Hirai confirmed to reporters that 65nm Cell processors have been used in PS3s since the "last holiday season." Launch PS3 systems used a more expensive, and more energy-hungry 90nm process. The graphics chip for the PS3, known as RSX, will also be getting an upgrade this Fall. The move to a 65nm process will once again lower manufactuering costs for the Japanese electronics giant, and will also make the system much more energy efficient.
Sony is focused on restore profitability to its games division, especially after it revealed the significant $3 billion loss it has incurred on the PS3 so far. Investors will undoubtedly cheer at this news.