Sony is gunning for PS3 profitability this fiscal year – which, coincidentally, began this month – and it's hoping to get there by reducing the cost of key components, of course. The PS3's Cell CPU has already been shrunk from a big ol' 90nm to a relatively svelte 65nm, and there's an additional 45nm die-shrink in the works, which should be making its way to the PS3 "soon." A smaller Blu-ray laser could further erode the console's high cost. Notably absent from any speculation on cost reduction thus far: the system's 90nm RSX GPU.

Reputed Japanese financial services firm Nikko Citigroup upgraded its rating on Sony this morning, pointing out that the PS3 may cross over the profitability hurdle as early as this August. While Nikko CG didn't attribute this to a specific cost reduction, it's a safe assumption that a 45nm Cell CPU and a sub-90nm RSX GPU would be the key ingredients to a deliciously profitable PlayStation 3. Next step: that rumored PS3 slim. Start holding your breath ... now!

[Via Engadget]

The United States Air Force has an application in to the Federal Business Opportunities group to purchase 300 40GB Sony Playstation 3s. No, they're not belated holiday gifts for the troops; the consoles will be used to test the robust Cell processor and its military applications.

According to the document, the PS3 features the only Cell processor on the market to meet the standards required by the testing, and does so at reasonable cost. The Air Force Research Laboratory will be using the machines to conduct the tests, in what appears to be a growing trend these days. Or, you know, it's all a big scam so that they can get their Metal Gear Solid 4 fix.

[Via PS3 Fanboy]

IBM's Cell processor continues to shed those nanometers, soon down to a bony 45nm, reports Ars Technica. Of course, the smaller you become, the less energy you consume, and after trimming off 34% of its die area, the new Cell is practically starving itself. Can you believe this thing lives off a mere 80 watts? And to think, some of us have PS3s bulging with 90nm chips that scarf up 200 watts!

Not only are we talking less power consumption, the 45nm chip will be cheaper to produce than the current 65nm version, and when coupled with the incredible shrinking Blu-ray laser, Sony is poised to make PlayStation 3 manufacturing actually profitable – imagine that! Question is: when do all these savings get passed on to the consumer?

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]

As expected, Sony has sold off their Cell chip operations to Toshiba for an estimated ¥100 billion ($858 million), giving the one-time partner in the Cell project manufacturing responsibility for the PlayStation 3's much lauded brain.

So, Sony's ailing electronics division gets a much needed cash infusion and Toshiba presumably gets back to work on that first non-PS3 Cell device and that's it? Nope. Sony, and their PlayStation video game unit will continue to invest in the Cell chip (you didn't think they were just going to drop it off at Uncle Toshiba's house and leave, did you?). Of course, we've been told deals like these take a little time; expect this one to be completed by March.

[Via Engadget]

Read – Sony to Sell Chip Operations to Toshiba [AP]
Read – Toshiba press release

Reuters is reporting that a Sony is in talks to sell its chip production facilities to Toshiba, according to "sources close to the matter." The 100 billion yen (about $870 million) deal is reportedly set to finish in a few months and will include the lines for Sony's PS3-powering Cell processor.

Does this mean Sony is giving up on its much-hyped computer-on-a-chip? Not likely -- Reuters says any deal would probably include a Sony/Toshiba joint venture to ensure a steady supply of Cells for Sony systems. The transfer of ownership would provide a cash influx for Sony and probably help Sony cut overhead costs related to staffing and upkeep at the plants.

The move isn't totally out of left field for Toshiba, which helped in the development of the Cell chip along with Sony and IBM and has expressed interest in using the Cell in non-gaming devices

California-based Parallel Processing Corporation has filed suit against Sony, alleging that the Cell microprocessor infringes upon a 1991 patent licensed by Parallel Processing Corp for "synchronized parallel processing with shared memory." The lawsuit cites "irreparable harm and monetary damage" and seeks a pile o' cash, attorney's fees, and um ... immediate impounding and destruction of all Sony products that utilize Cell technology, or simply, PlayStation 3.

[Via PS3Fanboy]

A phone that has the ability to play NES roms isn't anything new, but a phone that was designed specifically for that purpose (see the "A" and "B" buttons) is plenty to trigger our desire synapses. Oh, and dig this: It's got TV out, so you can play on a big screen, much to the delight of people at awful parties everywhere.

But now, as you've probably guessed, it's time for the sad news. You can't buy the phone (made by Hong Kong's Gionee) here. But, maybe that's for the best. Can you imagine how irritating it would be to watch YouTube videos of Super Mario Bros. speed runs interrupted every 20 seconds with "Gram Mam Calling"?

[Via Cell Blog]

A recent market study revealed that consumers in the U.K. are spending more money on downloading games than ringtones, music, or videos. Research firm GfK M² estimates the mobile gaming market is worth nearly four times the current value of music downloads and eight times the video download market.

Surprisingly, much of this growth has taken place over the last year, says GfK. In 2006 there was "less activity in the mobile gaming market as well as poor phone functionality, limited game offerings and perceived high prices". Even though most game downloads in the U.K. go for £5 or more, gamers seem happy to pony up the cash. It's only a matter of time until free ringtone sites convert their annoying banner ads and "give away" cheesy game knock-offs.

What a difference a month and several thousand gaming consoles makes. Sony announced today that the 250,000 PS3s that have run Stanford's Folidng@Home research program in the last month have delivered nearly 400 teraflops of computing power, nearly doubling the pre-PS3 computing capacity for the network. The PS3 has been a PR dream for the project too, leading to a "halo effect" increase of 20 percent in the number of PC folders, according to Sony.

A downloadable update for the PS3 version of the program will be available tomorrow, offering increased folding speed, better globe visibility and, most importantly, "the ability for users to create longer donor or team names." Finally, our dream of folding for Team "JoystiqSingleHandedlyCuresAllDiseases" can be realized.

The use of the PlayStation 3 in the Folding@home project has proven to be phenomenally successful (even Team Joystiq -- thanks, guys!). Now, the Cell chip has served another purpose: 3-dimensional medical imaging.

IBM and Mayo clinic today announced that they have been using the Cell chip for imaging purposes such as cancer detection. According to the press release, the imaging program originally would run on typical processors and that optimized registration of 98 sets of images would take 7 hours typically. However, use of the application on the Cell-equipped IBM BladeCenter QS20 is 8 minutes 36 seconds -- approximately fifty times faster.

The PlayStation 3 itself is not being used for the imaging, and for that we say pity. We actually find it interesting watching the proteins fold and inviting our chemistry-oriented buddies over to identify common bonds and laugh at atomic jokes that we don't get. How about a downloadable application in the vein of this imaging program that both showcases the PS3's horsepower and shows interested parties how cancer looks inside the body?

The full results of the imaging experiment will be presented at the Institute of Electrical and Electronics Engineers International Symposium April 12 to 15 in Washington, D.C.

[Via The Mercury News]

Not content with just three Sony exclusives, Namco Bandai has announced that the arcade version of Tekken 6 will utilize the Cell processor, making it the first commercial use for Cell outside of the PlayStation 3.

This isn't the first time that Namco has adopted PlayStation hardware for the arcade as both their System 11 and System 256 boards, for example, produced plenty of Playstation-based hits. What remains to be seen, however, is whether or not Namco Bandai will license out this technology for other developers to use. While they have done so in the past, they are currently undecided.

Tekken 6 is still slated for an arcade release later this year with no solid date as of yet.

Wanna discover a cure for cancer while you sleep? Or solve the mysteries of Alzheimer's in your dreams? Perhaps unfold the complexities of Parkinson's even as the drool beings to seep into your pillow? Then tonight, before you tuck yourself in, remember to power on your PlayStation 3 and launch the Folding@home application, joining PS3 owners everywhere as we commit our consoles' processors to the first-ever Sunday Night Foldathon.

Note: After installing 1.6 Firmware, Folding@home can be downloaded from the Network tab in the XMB menu. The application requires 250MB of hard drive space. Once launched, the application will automatically download a work unit from Stanford University and begin computation. If you're feeling a pang of gamer camaraderie, hit triangle, select identity, and join existing team #57516. All set? 'Kay, this is your cue to hit the lights and let Cell do the rest -- while you rest. Sweet dreams.

[Via PS3 Fanboy]

Not that Pokémon -- only the second best-selling game franchise evar -- needs any marketing spin to excite sales of its predestined two-headed spawn Diamond & Pearl, but Nintendo does seems eager to herald the game's impending arrival as a sort of "My First Celly" for DS toting youngsters eager for chatter. Of course, this is simply the ability to chat with registered friends using DS's VoIP capabilities, enabled by the new Pokémon game. While it's a far cry from pending productions and possibilities proposed by the competition, VoIP on DS is a little used feature that has the potential to be a unique selling point.

Sure, it's tethered to Wi-Fi hotspots, but the technology offers the promise of safe communication -- in terms of both who your kid be talkin wit' and potential costs (or lack thereof) -- for concerned parents looking to serve their whiny offspring. Then again, DS VoIPin' lacks the much desired 'prank call' feature. With mischief muted, your preteens are gonna have to settle on playground gossip. That, or they could actually engage in some good ol' pocket monster melee. Imagine that.

Pokémon Diamond and Pearl are scheduled for release on April 22.

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]