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Shrinking IBM chip to cut PS3 price tag

IBM will soon be producing a smaller and more energy-efficient Cell chip that will eventually cut the cost of making PlayStation 3 consoles.

It won't make the games run any better, but a new version of IBM's Cell chip, which powers the PlayStation 3, will take up 34 percent less space and use 40 percent less power. But the best news is that the energy-efficient 45-nm processor will allow cutbacks on the PS3's cooling system. The cooler chip is also expected to be more reliable and cut down on returns. This should result in lower costs to produce and maintain--eventually leading to cheaper prices for consumers.

Read the full Ars Technica story: "IBM shrinks Cell to 45nm. Cheaper PS3s will follow"