Smaller Cell and RSX Chips Coming To The PS3 In August?

It’s safe to assume that the PS3 is part of a bigger Sony strategy (whether they really see the real synergy from it or not) but its even safer to assume that Sony has invested alot (Billion + is still alot of money these days right?) and if we really wanna go safe, Sony is losing money on the PS3. That doesn’t sit well for stock owners or the bottom line of the company, although 2008 has indeed turned out to be a fantastic year.

Now comes news this morning that Niki Citigroup has upgraded its ratings for Sony in anticipation that sometime this fall (August seems to be the month all financial companies are pointing to) that Sony is looking to transition to and begin to offer the smaller 65nm Cell processor and a smaller form of the 90nm RSX graphic card. Sony on their ended has always stated that the PS3 will only break even once both the RSX and Cell processor have shrunk and if they can really get that to happen now; they will be breaking even in the early rise of the PS3 and can have a very profitable outlook as the system continues to gain momentum.

Having said that, many also speculate that around Xmas time, the PS3 will be due for a price cut so by how much and how that will effect the bottom line will yet to be seen as all this is speculation. Having said that, even with MS cutting the price of the 360 but a large amount across its entire lineup, the PS3 has continued to outsell it in Europe.