Sources: Sony May Sell Game Chip Facility to Toshiba

Sony Corporation is reportedly in talks to sell its production facilities for advanced microchips used in its PlayStation 3 game console to Toshiba Corporation. The sale, which would include production lines for the PS3 "Cell" microchips, is part of Sony's strategy to shed costly semiconductor assets and focus on the production of strategic products such as image sensor chips used in digital cameras and camcorders. The business daily Nikkei said Sony plans to sell production facilities for cutting-edge microprocessors and graphic chips to Toshiba for about 100 billion yen ($869.7 million) and an agreement is likely within a few months. To secure a stable supply of chips for its game machines after the possible sale, Sony is considering to set up a joint venture with Toshiba to take over actual production activities at the manufacturing facilities.

News source: eWeek

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Neither HD-DVD or BD have got off the ground yet.
Neither format will get off the ground untill Joe Average decides it's time to gt a HD ovie system, that won't happen untill prics go down. HD-DVD will obviusly get there first as they allready have $200 players coming out before x-mas, while BD is still twice that.