Sony stocks upgraded in anticipation of smaller chips
by Andrew Yoon 
{ Apr 21st 2008 at 8:30AM }
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]
Reader Comments (Page 1 of 1)
stargateheaven @ Apr 21st 2008 8:40AM
This was earlier than expected. Hmmm, I wonder how much it costs to make the PS2?
Popfrogs @ Apr 21st 2008 12:09PM
The PS2 is a money press for Sony just like the Wii is for Nintendo. Both are very low cost items, but the PS2 even more so since it's been in production for nearly 8 years now. The funny thing is, with games like Chains of Olympus, the PSP looks like it has more power than either the Wii or the PS2 at this point.
Nerdkiller @ Apr 21st 2008 8:50AM
I wonder how long until Wretched comes along and ruins everything?
Andrew Yoon @ Apr 21st 2008 8:52AM
He's already been banned. =D
Keep using that Exclamation Point at the bottom of a comment to report it. Enough reports and they get booted.
2Perfect @ Apr 21st 2008 8:50AM
Hmm I thought they already lowered the cost enough to gain profit?
"As of January 2008, each unit costs around $400 to manufacture" (Wikipedia)
But yeah, I heard they've been producing the 45nm chips since Feb.
PS: What's the picture of? A scratched out PS3 or something? :S
Kspraydad @ Apr 21st 2008 9:20AM
Ice cold.
Jerry: Do women know about shrinkage?
Elaine: What do you mean like laundry?
Jerry: No, like when a man goes swimming afterwards.
Elaine: It shrinks?
Jerry: Like a frightened turtle!
Elaine: Why does it shrink?
George Costanza: It just does.
Elaine: I don't know how you guys walk around with those things.
Nate @ Apr 21st 2008 8:52AM
Yeah, I was going to say, didn't they announce back in like january that they're breaking even on the 40gig models?
Draco @ Apr 21st 2008 8:57AM
well, at 400$ cost for the 40GB, then they would have to pay zero to the retailer and no shipping charges to break even.
DMeisterJ @ Apr 21st 2008 9:09AM
Nice.
Good job Sony.
Hope this means a price drop soon.
o_o @ Apr 21st 2008 9:57AM
I wonder, will this affect the PS3's performance?
wonway01 @ Apr 21st 2008 10:08AM
Chip size reduction does not increas performance at all. Makes it take less power to run and expels less heat. The big deal is it costs less to produce.
Also when they announced they got the production cost down to $400 they still were seeing a small loss as they sell it to retailers for less then that so they can sell it for $400
JoJo @ Apr 21st 2008 10:23AM
If chip size is reduced, does that mean that the PS3 model itself is going to be slimmer? I wonder how it would look like. If it looks tight and has some things i like, I would trade my 60g PS3 for it! BUT if the performance is the same and no upgrade or somthing, nah.. . . . . . . .dot dot... JUST 8 MORE DAYS TIL GTA IV COMES OUT BABY!!
Nate @ Apr 21st 2008 11:43AM
the chip itself is pretty small (what, about 2 cm squared? ). They would have to be able to shrink a whole lot more before the ps3 itself becomes any smaller. You'd have to change the motherboard, blu ray drive, and so forth before you'd notice anything.
chris.westermann @ Apr 21st 2008 10:26AM
Actually shrinking chips is an effective way to improve performance. Look at the world of Intel and AMD, every shrink in their technology allows them to clock faster because the chips consume less energy and produce less heat resulting in more reliable operation at faster clock speeds.
Sony isn't opting to gain performance in the PS3, you have to design a game console that follows a set specification, having PS3's that work faster or slower would cause the game developers way too much grief. But the smaller Cell processor designed by IBM will see faster performance in other applications outside the PS3.
Devin @ Apr 21st 2008 10:27AM
Please God, make Sony price drop before Summer! Also, let them start including DS3, as well....as I don't want SIXAXIS anymore....
Honestly, I don't want to buy the current 40GB at $400....Sony needs to unveil a new SKU soon or else I don't see their sales doing any better than last months (here in the US atleast)....
Anyone else agree or in the same boat as me?
The Aggie CEO @ Apr 21st 2008 11:07AM
so you havent heard of the 80GB MGS4 bundle??
or you just dont wanna pay more than $400 for it??
Devin @ Apr 21st 2008 11:25AM
I don't need BC, I don't care for the special color and I don't want to spend $499 on a console. All I want is a new SKU that sports either a price drop w/ DS3 or a HW revision w/ DS3 (at current price).......just something to add more value/justification for me to buy one (now that I've waited for over a year to buy one)....
Nate @ Apr 21st 2008 11:43AM
of course... I know exactly the perfect system for you:
a blu ray player
a top of the line game system
a top rated game bundled with
the best controller on the market
and the prestige of owning it all in one complete freaken awsome package...
but it must be cheaper then anything else too.
if its not, and if its missing oen thing... there isn't enough value in it for you.
should we call you princess?
ryan @ Apr 21st 2008 11:55AM
princess? no. smart maybe. I'm in the same boat too.
I've been waiting for a reasonably priced PS3 with all the fixings also. but I will most likely settle for the MGS4 bundle.
Devin @ Apr 21st 2008 11:56AM
I've waited long enough to expect those things before I buy. I'm not asking for much. The console is worth to me what I'm willing to spend on it.
That amount would have to be either:
$349 = same HW, w/ DS3 and a decent bundled game
or
$399 = HW revision, w/ DS3 and a decent bundled game
I'm not alone when I say this either.
Popfrogs @ Apr 21st 2008 12:20PM
LOL you guys sure are cheap. I got my 60GB at launch and have never regretted paying $600 for it. I guess there are alot of people like you though, there's no other way to explain why the PS2 refuses to die.
Devin @ Apr 21st 2008 12:53PM
But Popfrogs, you purchased yours At Launch and it offered/will offer the most of any PS3. I am purchasing mine a year and a good 5 months later. I am just wanting a controller to come with the unit that should've been there Day 1 (thanks Immersion!). All I am asking/wishing for is that DS3 come standard and I would like there to be something more added to the next SKU rather just more GB's (I'll upgrade it myself, thank you very much) to make me want to jump (either HW rev or price drop).
So are they talking Sony moving to 45nm or 65nm? because I was told that the current 40GB are on 65nm rather than the 90nm like the first-gens.
Popfrogs @ Apr 21st 2008 4:38PM
@Devin: Fair enough, both of the MGS4 bundles and even the GTAIV bundle should fit the bill then, unless you plan on paying less than $400. Maybe you could get a 20GB off Ebay cheap and use the money you save on a DS3. Or...you can keep waiting. Who knows when/if the next price drop is coming.
XDragon @ Apr 21st 2008 10:29AM
I have the 60g model and I would like to also have the next version with the reduced rsx and cell. I've been holding off getting a 2nd system for the next hardware revision because I want a 2nd Blu-Ray player. Unfortunetely I'm using my PS3 to watch movies a lot more than to play games but that will change come Soul Calibur 4's release!
XDragon @ Apr 21st 2008 10:33AM
Reducing the size allows for less energy consumption, cooler running temp, reduced cost and faster reproduction.
Popfrogs @ Apr 21st 2008 12:58PM
Yep, because when you go from a large (90nm) to a small (65nm or lower) process, you increase the yield.
To really understand it, think of a pizza. A 90nm process pizza has 5 slices. A 65nm process pizza has 8 slices. The pizza size hasn't changed, just the slice size. Since the size of the pizza slices don't matter to whoever is eating them, the more slices you can get out of each pizza instantly reduces your cost to produce the pizza and boosts your profits (or cuts down your losses).
A nice side effect of going to a smaller process with chips like these is that they produce less heat and require less energy to operate. In 4 years I imagine the PS3 will weigh about 5lbs less since it won't need the massive heat sink it needs today.
Sorry if I dumbed it down XDragon, but many people here may not understand the implications of chip fabrication and process sizes.
Coops @ Apr 21st 2008 11:41AM
SO does this mean a drop in the sale price or just a drop in their manufacture costs.
I want to get one in June when MGS4 comes out but will be really annoyed if a few months later it has a large price drop or a slim model or something (tbh I kinda doubt a slim model so soon, especially as it's only the size of the cores that are decreasing).
Also would be nice if Sony released a nice SKU such as a DS3 or MGS4 bundle in Europe sometime soon, really annoys me that we don't get much of the good stuff...
Gabriel @ Apr 21st 2008 1:50PM
Ever stop to think that maybe sony is just using the MGS4 bundle as a way to get rid of any older 80gig ps3's they have left before rolling out new bundles?
XDragon @ Apr 21st 2008 3:17PM
I also think Sony will use GTA and MGS to move their old inventory so the next non-bundle will be more profitable and include the Dual Shock 3.
I'd also expect to hear more about backwards compatablility for the 40g before the year is up which would help Sony to reduce the number of skus out there.
At the end of the day, no one will care if the hard drive gets larger as time goes on as long as other features are not removed.
tyba @ Apr 21st 2008 2:54PM
I know it's early, but I'm ready for a second system... a redesign would sure make my purchase a lot easier to swallow.
farfisa @ Apr 21st 2008 3:07PM
I may be one of the few, but my 60 gig fan goes on way too loud and way too often for my liking. I'd go for a new model that runs cooler and quieter in a heartbeat--then I could finally ditch my (noiseless) DVD player.
Popfrogs @ Apr 21st 2008 4:21PM
Vaccuum it out once in awhile. Since I cleaned mine (and the vents were positively filthy) it has gotten much quieter. Now, stuff like Folding @ Home will still fire it up but overall it's breathing easier and more quietly now.
Nate the Prophet @ Apr 21st 2008 4:13PM
Devin--you'll get your 40GB "update" and the end of the summer w/DS3, after they've sold a million or 2 of the MGS4 bundles.
snorkel @ Apr 22nd 2008 11:35AM
Just as a FYI, the current 40gb uses a 90nm RSX and a 65nm Cell, and it does not get hot and is whisper quiet and this is actually not a bad combo as the noise and heat is to a bar minimum, my concern is whether or not the upcoming 80gb for the MGS bundle will have at least the 65nm processor as the 90nm produces way to much heat and causes the fan to run very loud after a few minutes.
If the MGS bundle has the same speces as the 40gb I would buy it without hesitation, but I would be really ticked off if I bought one and it has the old 90nm cell.