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.

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]

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.