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Sony to end in-house chip production

Reuters reports that Sony is looking to take production of its Cell chip, which is scheduled to undergo a redesign in an effort to make production more efficient, to a specialist chip producer. In-house production of other internal PS3 components may also cease.

“When we first offered the PS2, there were no semiconductor companies that were able to make chips for the machine, so we did it ourselves,” Sony’s executive deputy president Yutaka Nakagawa stated. “But now, there are companies that specialise in chip production.

“These companies are aggressively investing in cutting-edge technology. Our basic understanding is that we probably won’t need to do everything by ourselves for next-generation chips.”

The move to alter the Cell chip’s architecture is designed to lower the production costs of PS3 and reduce the loss Sony currently makes on each console sold. It could also prove to be a catalyst toward a drop of RRP on the High Street.

The company has stated that it will make a final decision on the move in late 2008 or early 2009.

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Tags: Sony , cell

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