Sony to sell PS3 chip production lines to Toshiba

Recent rumours, later denied by Sony Corporation, have turned out to be true. According to Reuters, Sony plans to sell its "Cell" microprocessor output facility in Nagasaki prefecture and "RSX" graphic chip production line in Oita prefecture, responsible for making key microchips used in its PlayStation 3 game console, to Toshiba Corporation by March 2008. Sources close to the matter estimate the price to be in excess of 100 billion yen ($858 million). Toshiba, Sony and Sony Computer Entertainment plan to set up a joint venture next April to run the Nagasaki facility.

Sony said back in February it would cut future chip spending and might not produce an advanced version of the "Cell" chip with 45 nanometre circuitry in-house. Now, Sony said it will cooperate with IBM and Toshiba in developing the "Cell" chip with 45 nanometre circuitry, to replace the current 65 nanometer model. Developing more advanced and less costly videogame chips is critical for Sony to make a turnaround in the "next generation" game console war.

News source: Yahoo! News

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