We don't know for sure if Sony downsized the PlayStation 3's RSX graphics chip to 65nm, matching the already 65nm Cell processor, but we might have some anecdotal evidence from an external source. A forum poster at slickdeals used a Kill-a-watt device to check the power consumption of the 40GB and 80GB models during idle phase, while spinning a DVD and with Metal Gear Solid 4 in the drive, and found a 12-20 watt difference favoring the new 80GB.

It's not enough to say Sony has finally upgraded its RSX graphics chip, but it is interesting to ponder. Now, can someone end this speculation by voiding their 80GB's warranty and snapping a photo of the guts?

[Via Engadget]

Creating, manufacturing and launching a console is expensive. That's a lesson we learned during our unsuccessful attempt to revolutionize the industry with the JoyStack, the world's first edible console. Of course, we only made two, the graphics were terrible and people complained that it was just a copy of Syphon Filter 2 wedged in-between two pancakes, but it did give us perspective on Sony's fiscal 2008 report. Having sold the system at price lower than the manufacturing cost, the PlayStation 3 was a $2.16 billion endeavor in 2007, with another $1.16 billion being lost in 2008.

The $3.32 billion investment, which includes the monolithic system's complete development and introduction, "may not be fully recovered," according to Sony. The manufacturer warned that should the PlayStation 3 fail to reach "favorable market penetration", it would have a "significant negative impact" on the company's profitability.

While the cost may seem astronomically high, especially compared to the JoyStack, we've seen rival manufacturers taking their sweet time to reach profitability (a top priority for Sony). The race is a long one -- and we've seen each competitor's fortunes improve over the last year.

[Via GameDaily]

Sony's CEO Sir Howard Stringer told shareholders today that the company's top priority is to "to restore profitability in our television and game businesses," reports Bloomberg. The games division saw a profit during the last holiday season, and Sony expects PlayStation HQ to report an annual profit for the fiscal year ending March 2009, as well as at least 10 million in PS3 unit sales.

While PS2 sales are in slow decline, Sony said lower production costs and AAA titles (like this one, and this one, too) will help boost the division.

While confirming Home will "definitely be coming out in Autumn," SCEE president David Reeves said that "maybe we were too ambitious with the non-gaming applications within Home, getting sponsors and stuff like that." In an interview with CVG, Reeves continued to say, "In that sense we were deserting gamers. So, we're concentrating on the gaming by launching games in Home."

The closed beta for Home is still ongoing. Earlier today, EA Sports president (and former Xbox executive) Peter Moore said he was interested in the service but "disappointed" by its delays. Home producer Daniel Hill told our friends at PS3 Fanboy that game spaces will be shown later this month.

The super-sized, record-breaking protein-folding project Folding@home has claimed its millionth PlayStation 3 console, according to a press release from Sony Computer Entertainment. Folding@home began in October 2000 as an effort to utilize as much computing power as possible (via distributed clusters) to understand protein folding and misfolding. Researchers hope to gain a better understanding of related diseases such as Alzheimer's, Huntington's and various forms of cancer. The PS3 client launched in March 2007 and was last revised in December.

A million consoles may seem like a lot, but that's really not a large portion of PS3 owners, given hardware sales statistics. We'd like to thank everyone on the (currently) 218-member Joystiq folding team, who have helped us maintain a 367th out of 102,162 ranking. (Don't forget about PS3 Fanboy or the stellar Engadget teams, either.) Remember, it's never too late to join.

Sony bigwig Kaz Hirai is hoping that this next fiscal year, which begins in April, will mark a point where the PlayStation 3 loses its money sink status and becomes profitable. Said the president of SCE at the Consumer Electronics Show (via Reuters), "We want to get to the positive side of the equation as quickly as possible," later adding that the company is "going through the budgets right now. That (profitability) is not a definite commitment, but that is what I would like to try to shoot for."

Hirai cites the dropping costs of components used to make the PS3, as well as the removal of chips related to backwards compatibility, as examples of how the console is becoming cheaper to produce (and therefore less of a detriment to the company's bottom line). Hirai noted that the declining cost is "in line with what the company had expected." Not explicitly stated but certainly important are the titles expected next fiscal year: LittleBigPlanet, Home, Final Fantasy XIII, and the still-exclusive Metal Gear Solid 4.

Previously, Sony stated that it had sold 1.2 million PS3s since Black Friday -- NPD figures for December should reveal how that measures up to competitors. Microsoft recently stated its belief that the Xbox 360 is "on track to register the biggest year in video game history," while the Consumer Entertainment Association predicted industry growth to continue, albeit at a slower pace than last year.

Gaze upon the latest bundle for Japanese PlayStation 3 gamers. The Devil May Cry 4 40GB PS3 bundle comes in either black or white and includes a copy of Devil May Cry 4 (obviously) and a Blu-ray of bonus content. It will retail for 47,800 yen (approx. US $422), which is about 7,800 yen (US $69) more than the standalone 40GB model.

What makes this bundle interesting is that DMC4 is not an exclusive title. We're going to assume Sony struck some exclusive deal for bundling the game, although we'd love to see Microsoft unveil a DMC4 Xbox 360 bundle. It might actually help their hardware sales to confuse Japanese consumers thinking they just picked up a PS3. Devil May Cry 4 is due out January 31, 2008, in Japan and February 5 in North America.

[Via PS3 Fanboy]

Just as quickly as Sony Computer Entertainment co-COO Jim Ryan reignited rumors of a PlayStation Phone has Sony come forward with a denial (via CVG). "Jim Ryan was in fact misquoted by the Economic Times of India about this issue," according to a company spokesperson. "We do have talks with other arms of the Sony family about various topics but I can confirm we are not currently working together on the creation of a PlayStation Phone."

The original (mis)quote had Ryan quoted as saying, "The PlayStation is a proven success and so is Sony Ericsson. Convergence with the two arms working together is definitely plausible." How Ryan was misquoted or mistranslated is unclear.

[Via Engadget]

Has it been a year already? The rumors that Sony Computer Entertainment – the PlayStation folks to you or I – and Sony Ericsson – those are the cellphone folks – are teaming up to make a PlayStation phone are just as "seductive" today as they were back then. This time, it's SCE co-chief operating officer Jim Ryan giving India's Economic Times the following rather noncomittal tease: "The PlayStation is a proven success and so is Sony Ericsson. Convergence with the two arms working together is definitely plausible."

We would say it's as plausible now as it was last year when they first teased it ... or in June when Sony Ericsson filed for that PSP-esque gaming phone patent ... or in August when Sony Ericsson said they were "obviously" looking at a PlayStation-branded phone (just not this one). Regardless of how "seductive" the premise is to Sony, Ryan told the Times "it could be a while before a commercial launch of such a device happens... ." So, we'll see you same time next year then, PSP phone rumors?

[Via Engadget]

Sony Computer Entertainment Worldwide Studios today announced a collaboration with Paris-based developer Quantic Dream, one which promises to "redefine cinematic real-time entertainment" with a new PlayStation-exclusive title. Judging by Quantic Dream's past efforts in David Bowie dystopia sim, Omikron: The Nomad Soul, or the multi-angle murder mystery Fahrenheit (dubbed Indigo Prophecy in America), cinematic presentation and integral narratives seem du jour on the developer's list of goals.

Quantic Dream President and CEO, David Cage commented on the choice of console and the sheer pleasantness of the folks at Sony. "We always believed that "next generation" meant more meaningful content based on players' emotional involvement. To us, PS3 is the only platform that can truly deliver on this promise, and SCE WWS is a group that is both inspiring and pleasant to work with."

Though the name of the upcoming PS3 game isn't specified and could very well be an entirely new game, Quantic Dream's website currently lists Heavy Rain as a "confidential next generation console game." The film-like poster above, which bears the subtitle "The Origami Killer," certainly seems to highlight the title's cinematic aspirations, if not the question of why anybody would want to murder folded pieces of paper. What did they ever do to you?

Venture into the Uncanny Valley after the break to see Heavy Rain's impressive and quietly disturbing E3 2006 Virtual Actor demonstration. If the announced collaboration turns out to be a different game entirely, we fully encourage the parties involved to step into the rain and scream, "Gotcha, suckas!"

[Via Sony press release]

Auto industry tome Car and Driver made the trek out to Japan for a feature on Gran Turismo creator Polyphony Digital studios in its August 2007 issue. Among the obsessively detailed descriptions of the Polyphony offices and some ridiculously simplistic analysis of the console wars, the article managed to squeeze in a few details about Gran Turismo 5 from creator Kazunori Yamauchi. Among the salient news:

• Programming detailed car models on the PS3 is a ridiculously time-consuming process. "For Gran Turismo 1, one car was one day's work for one man," Yamauchi said. "For GT3, one car was one man's work for 30 days. For GT5, one car is one man's work for 180 days."
• Since programming 700 new cars for GT5 would take the Polyphony team five years, the game will launch with what the article calls a "a much smaller collection," with downloadable updates to follow. This seems to somewhat confirm earlier rumors of a focus on downloadable content for the GT series.
  
• Yamauchi said the PS3 is powerful enough to handle in-game car damage , but implementing it realistically would require "double the work" in physics and artistic modeling. So will it make it into the game? As the Magic 8-Ball might say, signs point to no.

While comments from Sony seem to indicate a vague Spring '08 release for GT5, the Car & Driver article speculates that Sony might have to indulge Yamauchi's artistic temperament, "even if it pushes Gran Turismo 5's release date to the end of 2008 or beyond." We just hope the game doesn't get shoveled over to the PS4, or worse, end up in perpetual vaporware development like Gran Turismo Mobile.

In March, The Wall Street Journal said Ken Kutaragi was a "stumbling block" for Sony; now they're reporting that the controversial chairman and group CEO for Sony Computer Entertainment, Inc. -- and father of the PlayStation brand -- will be retiring his post effective June 19. Of course, the 57-year-old exec was recently kicked upstairs, removing him from day-to-day operations following what many considered to be a botched strategy for the PlayStation 3. Kaz Hirai, who replaced Ken in December, will be promoted to CEO of SCE.

And Kaz, you better start practicing. You've got some large shoes to fill ... four-dimensional shoes that require dual HDMI soles to output 120 footprints a second. But seriously, we'll miss your krazy quotes, Ken!

Update -- SCEI statement: "Kutaragi has said that he has been considering this decision for some time. He stated that, in the six months since the appointment of Kazuo Hirai as President in December, the new generation of management, led by Mr. Hirai, has continued to develop. With the March introduction of PS3 in Europe completing the successful launch of PS3 worldwide, Mr. Kutaragi has identified SCE's Annual Shareholders' meeting in June as the ideal timing to pass on the torch to the new generation of management. Mr. Kutaragi will now apply his extensive technological knowledge and leadership skills to take on new challenges beyond the world of PlayStation. Sony and SCE will continue to seek Mr. Kutaragi's input and ideas from a broad perspective, while continuing to support him as much as possible in the realization of his dreams."

Read - PlayStation Creator Plans to Retire (WSJ subscription reqd.)
Read - Kutaragi to step down as Sony game unit CEO (IDG)

Sony has said "No" to a PSP redesign on several occasions. Now a conflicting report from SCE UK managing director Ray Maguire says a "smaller, lighter" PSP will be introduced in the future. However, a day later the head of SCE UK PR fed us this line: "There are no immediate changes planned for PSP." Did someone miss the memo?

Actually, both of them are probably telling the truth in a sneaky corporate kind of way. Most gaming systems get plastic surgery a few years after their launch. The DS was transformed from a clunky brick to sexy machine we're proud to carry around. It took four years for Sony to release a slim version of the PS2, which means the PSP could be overweight for another two years. A redesign is on the horizon, but that horizon could be a lot further out that we think.

God of War II developer Eric Williams is urging you not to buy his game -- until after April 1. During one of his most loopy moments in the development cycle, Williams was baited into a wager, betting that God of War II would not sell 500,000 copies by April 1 (it releases March 13). Losing means leasing a Maserati Quattroporte and becoming lunch chauffeur for a year. According to LeaseTrader, a 49-month Quattroporte lease would be rated at $1,695 a month (a 12-month lease would run higher). "I might have to blow my entire savings on this bet, NOT COOL AT ALL," laments Williams.

The cynic in us wonders if this is merely a perverse marketing stunt: buy our game, make a developer suffer. Even if it's not, there are easily a half-million PS2 owners anxiously awaiting God of War II's release. Consider that similarly worded 'epic' Gears of War managed to sell one million units in two weeks; and Xbox 360's user base is a mere notch on the yardstick used to measure PS2's base. Factor in that PlayStation 3 has yet to replace PS2 as most owners' go-to console, and Mr. Williams, the (soon-to-be) poor fool, has made an awfully careless bet. Think the rest of the development team will hold him to it?

[Thanks, Yoon]

IGN's God of War II review is so ahead of its time that it (admittedly) fails to provide feedback on two key features of the retail edition of the game -- neither of which apparently would affect the review's overall score (9.7/10). The first is simply a bonus disc bloated with fanboy fluff (behind-the-scenes doc, etc.). The second, and more significant, is that God of War II will run in 720p (HD) resolution when played on PlayStation 3. The question for PS3 owners with HD displays, who are still holding onto their PS2s, becomes: is now the time I trade rumble for a sharper image? (PS2 owners wondering if this is the reason to upgrade to PS3 should know that it's not.)

Update: Doh, IGN got mixed up: "we've gotten word from an SCEA representative that the game will support 480p on the PlayStation 3 but not 720p. Our error was due to crossed information and we're sorry for the confusion." So when does Sony announce PS3 is packing its own 'Ana' chip? We want upscaling!

[Thanks, jonathan]