Cell processor goes on a diet

IBM has started producing the first Cell Broadband Engine processors based on its 65nm process technology, according to a report by ExtremeTech. The Cell processor is used in Sony's PlayStation 3 console as well as BladeCenter QS20 servers from IBM itself. ExtremeTech says production of 65nm Cell chips is currently in progress at IBM's East Fishkill fabrication plant in New York. The move might precipitate price cuts for the PlayStation 3, although considering iSuppli has estimated that it costs Sony between $806 and $840 to produce each console, the company might be in no hurry to reduce prices.

On the other side of the next-gen console war, the Xenon processor inside Microsoft's Xbox 360 console is also expected to undergo a shrink to 65nm process technology some time this quarter. According to past rumors, 65nm Xenons may go inside a second-gen Xbox 360 with HDMI video output and a bigger hard drive.

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