Sony looks to cut PlayStation 3 production costs

— 12:47 PM on February 2, 2007

Following Sony Senior VP Takao Yuhara's hints regarding future PlayStation 3 price cuts, the folks at DigiTimes have learned that Sony is looking to make "drastic" reductions to the console's production costs. At a recent investor conference, Sony said production of 65nm chips for the PS3 had already begun. The console's microprocessor and graphics processor are both based on 90nm process technology, and the company says moving to 65nm will shrink the chips' die sizes by 40%. Sony also plans to reduce the number of parts in the PS3 in order to allow for further cost reductions. In its present form, the PS3 is estimated to cost between $806 and $840 to produce, depending on the model.

Naturally, Sony isn't the only one looking to shave costs. DigiTimes says Microsoft expects production of 65nm processors for the Xbox 360 to begin in the first quarter of this year, although the company might not actually transition to the new chips until the middle of the year.

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