The current PS3s already have efficient functionality with the shrunken 65nm Cell processor, but now things are going to get even smaller. Sony and Toshiba have plans on mass producing a 45nm Cell processor starting in 2009. The plan is to integrate them first into PS3s. The result of which will allow PS3s to save power up to 40 percent.
As usual, smaller chips mean less heat, less space, and more reliability. Engadget suggests that this new hardware revision could usher in a price cut and a PS3-slim model. All seems logically sound, though -- even if the chips were produced early in the year -- we still wouldn't see the end product until late 2009 at the very earliest. So if you've been holding out for a PS3 until the slim comes into town ... you've still got a long wait ahead of you buddy.