Kazriko

It's almost embarrasing how some of these firms just fail to do their homework before releasing reports like this. There was an article not too long ago from IBM where they stated that the yield was coming together much better than expected and that any delays in the PS3 would not be due to their part, while this article is claming the exact opposite.

The idea that the chip would cost that much is ludicrous as well. Similarly die-sized processors go for much less than that at RETAIL, so the wholesale price for the Cell is likely far less than Lynch is predicting. Really, the two biggest unknowns in the PS3 are the RSX and the Bluray drive. Sony is cutting the cost of the bluray drive with respect to other commercial Bluray players by running all of the decoder and BDJava code off the Cell chip. In addition, they've been making similar drives and selling them in Japan for several years now, so they probably have the design and cost down better than most first generation optical drives.