According to David Reeves, president of Sony Computer Entertaintment Europe, the PS3 could get a 45-nanometer Cell chip in a few months. From an interview with The Guardian:
We're always looking at ways to reduce costs [in the PS3] , replacing the current 65 nanometre Cell chip with a 45 nanometre one probably in middle of year.
So why should you care? Well, the chips should run cooler and at a lower wattage. But more importantly, shrinking the processor to something cheaper to build is absolutely essential if we're ever to see a cheaper PS3.
What we're a little confused about is why it's taking Sony so long to make this switch. Because, according to reports, IBM has long figured out how to make a 45nm Cell. So is Sony sitting on a pile of 65nm chips that haven't sold since last year? [The Guardian via Engadget]