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.

Toshiba just pushed its SpursEngine co-processor chip out the door for sampling. Derived from the Cell processor at the heart of Sony's PS3, the SpursEngine SE1000 contains 4 processor cores (not 8 like the Cell) and a hardware codec for encoding and decoding MPEG-2/H.264 video. It's designed to manhandle real-time graphics processing and video manipulation when used in a potent three-way with your computer's CPU and GPU. The processor is expected to cost as little as $50 by the time it appears in the first consumer electronics devices -- likely graphics cards -- early next year. A very good thing if the production experience is anything like the demonstrations we've seen.

[Via Impress]

We've already seen the PlayStation 3 put to use for some non-gaming tasks (other than playing Blu-ray movies), and it now looks like the U.S. Air Force is aiming to get in on the act as well, with it recently putting out a so-called Request for Proposal that is seeking 300 PS3s for a "technology assessment." Needless to say, their primary interest is in the console's powerful Cell processor, which they say is the "only brand on the market that utilizes the specific cell processor characteristics needed for this program at an acceptable cost." Exactly what that program entails is unsurprisingly being kept under wraps, with the RFP only going so far to state that the Air Force Research Laboratory is "conducting a technology assessment of certain cell processors." Whatever it is, the Air Force certainly seems to be trying to keep costs as low as possible, with them apparently only interested in the 40GB model.

[Via Switched]

We're pretty sure there's a load of irony here somewhere, but we just can't put our finger on it. Sony is selling its chip manufacturing facilities -- including ones that build the Cell and RSX chips that go into the PS3 -- to Toshiba, and the $835 million deal goes down April 1. (No, this is not some April fool's joke, just really awkward timing.) Toshiba's also in a $16 billion partnership with SanDisk to produce flash memory, so it's looking like with the inclusion of Sony's chip capacity we're looking at quite the chip giant. We had wind of this Sony deal last year, but it looks like things finally got official just as all this "HD DVD losing the format war" stuff went down. No hard feelings, right Toshiba?

IBM might be lagging slightly behind the likes of Intel and Microsoft in the 45nm department, but rest assured that a 45nm version of Cell is in the works and most certainly headed for the PS3. Microsoft told us that 45nm for Xbox was in the works last year, and Intel is obviously churning out Penryn chips as we speak, but IBM has finally solidified its own 45nm plans for Cell, and will change over production "soon." The chip will use about 40 percent less power and will be 34 percent smaller than the 65nm version. That means less heat and more reliability, which of course means cost savings for Sony which will (theoretically) be passed on to consumers before too terribly long.

Toshiba's Cell processor-based SpursEngine B.E. was on full display at CES, with a variety of tech demos to show off its power. From HD video transcoding, facial recognition, or the always popular gesture-control Toshiba's baby went through a series of workouts, trying to be the third teammate, with your CPU & GPU, to speed heavy-duty processing. Featuring only four cores -- half the number found in the PS3 -- it handled all tasks thrown its way, check out the gallery to find out how the power of the Cell could help your PC in the future.

Toshiba's presence at CES isn't limited to just LCDs due in the first half of the year. We already got wind of a few products with no definite release date. First up is the Cell B.E.-equipped Qosmio (Cell-less current model pictured) and standalone HDTV prototypes designed for video upconversion, with the usual gamut of realtime video transcoding demonstrations. Also on tap is the next generation of REGZA Link based on WirelessHD and a Direct Methanol Fuel Cell for mobiles. Sounds like things could pretty interesting in Toshiba-land real soon.

Although they inked a 5-year deal back in January 2006, Sony is bailing on at least part of its commitment to the development of chips with 32-nanometer (or less) circuitry. The research required to developed the manufacturing technology now rests squarely on the shoulders of Toshiba and IBM. A move which certainly makes sense now that Tosh has manufacturing responsibility for Sony's Cell processor. Sony will continue to assist with "the design work" and making post-lunch runs to Starbucks.

We'd been hearing that Sony's new 40GB PS3 featured a revised design with a 65nm Cell processor and improved cooling, but sadly it looks like those reports were in error -- a Sony spokesperson has told Heise Online that the 40GB model continues to use 90mn processors, but does feature an updated design with a lower power consumption of just 120 to 140 watts, compared to 180 to 200 watts for the older models. Sony says its still planning on moving to 65nm processors in the near future, but for now, it looks like the PS3 is 90nm across the board.

[Thanks, Khattab]

So much for their earlier denial, eh? An anonymous Sony official has "confirmed" to Japan's Nikkei that they will sell their advanced computer chip operations to Toshiba in an effort to re-focus on core business. The official announcement is expected later today. The sale gives Toshiba the manufacturing responsibility for the much hyped Cell processor used in Sony's PS3. Sony, of course, will continue to invest in the Cell chip. Nikkei says the deal is worth some ¥100 billion (about $858 million) and should be completed by March.

Update: it's official.

[Thanks, Alex]

Craig Venter, a DNA researcher that had a part in deciphering the human genome, has stuck together 580,000 base pairs of genetic code to create an entirely new and alien chromosome. Based around the Mycoplasma genitalium bacterium (pictured in all its primordial glory), the new chromosome is then implanted into a living cell and renamed as Mycoplasma laboratorium -- don't you just love science jokes? The new "life form" is reliant on the host cell for replication and metabolism so it's not exactly entirely synthetic, but as the DNA is different, it is effectively an artificial form of life. Sounds like the human race's really doomed now: ultimately, all we're doing is setting the robots up with a tag team.

We've certainly seen PlayStation 3s used in academia before, but a "significant gift" by IBM to the University of Maryland-Baltimore County is enabling the institution to further develop its Multicore Computational Center. The facility now utilizes 32 Cell processors, and researchers at the lab are getting set to "develop applications" to harness all that power. Reportedly, the supercomputer will dabble in "visualization and computer modeling applications for aerospace / defense, financial services, healthcare / life sciences industries and weather." Hit the link below for a video report.

[Thanks, Ryan O.]
Read - IBM, UMBC partnership
Read - Video report

Toshiba's newfangled SpursEngine chip could soon be used to "work alongside a microprocessor to process video streams, recognize and process images, and tackle other multimedia chores," and while we're not exactly sure what kind of hit this will take on battery life, the prototype version is said to consume 10 to 20-watts of juice. Nevertheless, Tosh's new device "uses cores derived from the Cell microprocessor" and is being "aimed at multimedia applications" in particular. At CEATEC, the firm hopes to showcase its power by demonstrating the 1.5GHz unit in a number of laptops, and while Toshiba itself has "already started developing products using the processors," it will also be selling the chips to other interested outfits for use in their products.