In addition to talking movie downloads, Sony Computer Entertainment CEO Kaz Hirai confirmed at a business briefing yesterday (via Next-Gen) that the PlayStation 3 consoles produced after last holiday season all have the 65nm Cell processor (down from 90nm at launch). In addition, Sony will be slimming down the RSX graphics chips to 65nm this Fall.

The GPU shrinkage will make the PS3s cheaper to produce, use less energy and not heat up as much. That doesn't necessarily mean a price drop is imminent, but it does give the company some more breathing room to make up that $3.32 billion.

Reports that Xbox 360's Jasper chipset will begin shipping in August continue to hum along, as China Economic News Service has named three Taiwanese companies that have been contracted to manufacture, test and package the pair of 65nm microprocessors in preparation for a summer rollout. Taiwan Semiconductor Manufacturing Co. (TSMC) will build the chips, Advanced Semiconductor Engineering will test and package them, and Nanya will supply flip-chip packaging substrates (which sure do sound important). The Jasper combo will ideally use less power, simplify cooling and, most importantly, cut back on the console's jibba jabba.

Industry analysts have also pegged TSMC as the primary candidate for Valhalla chipset production (in addition to the Jasper contract, TSMC has also built 90nm chips for an older version of Xbox 360). Valhalla is rumored to be a single super-chip that combines the properties of a 65nm CPU and 65nm GPU, and is expected to be incorporated into Xbox 360 hardware in the fall of 2009.

[Via X-bit Labs]

After conflicting reports regarding the chipset being used for the new 40GB PlayStation 3 model, Sony's Kaz Hirai has explained to Japanese publication Impress that the new model will indeed use 65nm Cell processor chips, which will greatly reduce the power consumption of the console, while currently sticking with the 90nm RSX graphics chip.

Sony had denied initial reports of 65nm chips being used in 40GB version. Also mentioned in the interview is an indication that Sony is open, per se, to the possibility of bringing back the 20GB or 60GB models. "Depending on how the market reacts, it's possible for Sony to produce them again," he said. That would probably take people with pitchforks storming the Sony Castle demanding Metal Gear Solid 3 be fully compatible; we don't see it happening.

[Via Engadget]

A report from German site Computer Base reveals that consumers giving up backward compatibility on their 40GB PS3s are at least getting something in return. The new systems utilize the new 65nm version of the Cell processor, reducing the power usage from 200 watts to 135 and further limiting the heat and noise the system gives off.

With both the Xbox 360 and PS3 now having the cheaper, more efficient 65nm CPUs integrated into their designs, the race to 45nm can truly begin. After that? We're predicting microscopic quantum CPUs.

[Via Engadget]

Have you been as curious as us about when Microsoft plans to utilize smaller CPUs in their Xbox 360? According to The Mercury News' Dean Takahashi, who has previously written two books on Microsoft's consoles, the 65nm processors will probably start finding its way into new Xbox 360s by the end of the year. However, there are a few caveats.

The chips, which are a sizable difference than the current 90nm chips, are being planned for a new motherboard codenamed Falcon (if you recall, Microsoft's previous motherboard upgrade that included an HDMI port was called Zephyr). The upgrade will still have 90nm graphics chips from ATI -- that upgrade is for later. And there is no guarantee that the smaller chips, though theoretically will require less energy, will alleviate the Xbox 360's Red Ring of Death.

And so how will you tell if the console has the Falcon? You can't -- not at first, anyways. "Microsoft has no intention of telling you which box has 65-nanometer chips on the inside," he said. All Falcon-equipped Xbox 360s have HDMI ports, but not all HDMI-enabled 360s have Falcons. "I really don't know how you're going to be able to tell the difference. If you're buying an Xbox 360 without HDMI, then for sure you aren't getting Falcon," he said.

This Christmas, if you're hoping for a more reliable Xbox 360, there is a chance you could nab one. From what Takahashi has said, however, you might have to increase your Luck stat before you try to pick up one. Check out Takahashi's article for more details.

Though we're pretty confident the Xbox 360 price drop is coming sooner than "this Fall" – more like August 12th, if you want to be specific – we've had the entire Fall season marked on our Microsoft Executive Swimsuit calendar with "65nm chips" reminders. Those weary of the dreaded RROD have been looking forward to the smaller, cooler (and cheaper!) chips being included in the new systems, codenamed Falcon, but the extremely paranoid may want to hold off for the 45nm version.

"As 65nm just started production in the last two quarters, you would expect 45nm to [begin production] about 18 months from that timeframe," said the President of Microsoft manufacturing partner, Charted Semiconductor. That means production on those new even smaller and even cooler chips won't begin until late 2008, early 2009. If that's too long to hold off, take comfort in knowing that those 65nm chips have been produced for some time, and should be making their way to retail Xbox 360s soon (astronotip: Fall starts on Sept. 23 this year, so mark your various themed calendars).

We know the 65nm version of Xenon, the Xbox 360's triple-core CPU, had been delayed from Q1 2007 to "mid-2007," just missing being used in the Xbox 360 Elite, making irony the system's most prominent feature. But the CPU isn't the only thing getting shrunk: DigiTimes reports that the Xbox 360 will be equipped with a 65nm Xenos GPU this fall as well, with production of the new graphics chips scheduled for May. For those of you on the fence about the Elite, a newer, cooler, and cheaper (to manufacture) Xbox 360 should be here in the fall. The question: wait or jump in?

[Thanks, Fandel]

IBM announced today that it is beginning production a 65nm version of the Cell processor, which is a good bit smaller than the 90nm version used today. A smaller chip could also lower power consumption and lower production costs.

This news should not, however, get your hopes up for a price drop in the near future. The PlayStation 3 continues to be a hefty loss leader for Sony, estimated to cost $840 to manufacture. Sony is also gearing up to rip the PS2 hardware out of the PS3s to help with the European launch.

Historically, consoles have never seen a price drop in its first year. Will the rumored 2009 price drop, coinciding with the 45nm Cell chip, prove fruitful? It's certainly a lot more likely than seeing the console slash prices anytime soon.

[Via Engadget; thanks, Michael Chomiczewski]

Over the past generation, when a new console hits the market, the console manufacturer goes on to shrink the die size of the CPU. The benefits are a cheaper chip -- the smaller the die, the more that fit into a manufacturing run -- and cooler temperatures. The Xbox 360 die shrink is going to have to wait a little bit longer.

Originally slated for Q1 2007, the 65nm processors for the Xbox 360 are being delayed until mid-2007. This means gamers are going to have to wait a little bit longer to get those Xbox 360 units that aren't quite so hot; it also means prospective buyers may be waiting a bit longer to see a price drop.

Reducing the die size on the Xbox 360 CPU is a major step to a price reduction, something Microsoft needs right now. Xbox 360 sales are less than smoking and the PS3 and Wii offering up some competition, Microsoft could have used a price drop as an excellent weapon against them. Maybe Microsoft can get the 65nm chips up and running before the PS3 has a chance to entrench itself in Europe.

As part of any successful company's strategy to reduce the cost of their product (in this case the admittedly expensive PS3), Sony's Ken Kutaragi has revealed the not-surprising news that they're planning to reduce the system's Cell processor to a smaller, cheaper, and cooler 65nm manufacturing process in 2007. They're currently manufacturing the Cell using a more reliable 90nm process in both IBM's Fishkill and Sony's Nagasaki facilities.

Microsoft announced their intentions to use a 65nm processor several months ago as well, as part of their long term plans to continuously reduce cost (not price) of the console. It's unknown, but likely, that the PS3 will be met with similar concerns as the Xbox 360's overheating woes; a 65nm die shrink would ameliorate such concerns.

[Thanks, Siraris]

In a joint announcement, Microsoft and the manufacturer of the Xbox 360's CPU, Chartered Semiconductor, have announced that the console's processor will receive an upgrade in 2007. The upgrade will move the chip's design to a 65nm manufacturing process (the existing CPU is based on 90nm technology) which will provide lower power consumption and a smaller heat output. It's expected that the upgrade will not alter the processor's performance as this could cause compatibility issues with games already released or currently under development for the Xbox 360.

Although the launch of the Xbox 360 was touted by Microsoft as a successful one, a vocal minority of people reported that their consoles were crashing due to overheating. VNUNet points out that console manufacturers often take advantage of new processor technology as it becomes available, so this may not be a direct response to Xbox 360 overheating issues.

[Thanks, SloopyDrew. Via VNUNet]