It's a milestone folks: the PS3 hardware is finally ready to generate a profit. The loss-leading console once estimated to cost Sony more than $800 per (losing between $241 and $307 per console sold back in 2006) has likely turned a corner thanks to a reduction in manufacturing costs. While Sony isn't saying anything on the matter, PocketNews confirms that the latest PS3 SKU -- CECH-2100A spotted in the FCC back in February -- uses an improved RSX graphics chip based on smaller 40-nm processes similar to the PS3 Slim's new 45-nm Cell processor. The result is a 15 percent decrease in console power consumption when compared to the 120GB CECH-2000A PS3 Slim sporting a 65-nm RSX. The cooler running chip allows for a stealthier heat sink and power supply in addition to a smaller cooling unit. Those changes combined with fewer adjoining chips around the shrunken RSX should make the console cheaper to build which is good news to Sony's sagging bottom line.

Update: PocketNews has confirmed with Sony that the RSX graphics chip is built using 40-nm processes (not 45-nm). Post updated to reflect the change.

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Sony PS3 upgraded with cooler 40-nm RSX graphics chip, profits await (updated)