Sony to sell game chip production facility to Toshiba |
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Here's a bit of a surprising development in the high-definition media battle: Sony's deep in the middle of negotiations with Toshiba regarding the sale of Sony's microchip-producing facilities. These microchips are the same ones that give the PlayStation 3 its fair share of next-gen processing power.
This news comes directly from the business daily Nikkei, citing sources close to both parties.
Now it's nothing to get all up in arms about - Sony's just doing some very clever outsourcing, that's all. This is part of Sony's strategy to cut down on costly semiconductor assets, and this will let the electronics giant focus on the production of other products such as image sensor chips in digital cameras and camcorders.
And Sony is not letting go of the microchip facilities for a song: the company behind the PlayStation 3 looks to hand over the deed to the facilities for a cool 100 billion yen - that's about US$ 869.7 million dollars out of Toshiba's pocket. Although it seems that this price is right up Toshiba's alley, as an agreement between the two companies is expected in the near future.
And here's even more good news: to make sure that there's going to be no shortage of chips for PS3 production, Sony is also considering a partnership with Toshiba on the management of the facilities themselves after all is said and done. This bodes quite well for the PlayStation 3 - as it's going to have two great minds taking care of its chips rather than just one.
Not a bad business move from Sony indeed!
Thanks to super7 for the tip!
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Comments [refresh]
How would that not be a bad move? I can see one thing that has a potential of happening. Toshiba could "by mistake" make thousands of chips that for some reason, aren't up to par with expectations and they could by the time noticed, be in thousands of PS3's that all of a sudden don't work thus making the PS3's useless giving HD-DVD the upper hand.
Just a thought.
This, along with the move to having that taiwanese company start producing PS3's could lead to a decline in product quality.
Because as much as I rag on the games and performance of PS3...the hardware reliability is top notch, as are most sony products built in Japan and Soley by Sony. (I've dropped my launch PSP from 3-6ft, 6 times now and it's still rock solid....my GF bought a white one made in china, dropped it once from 1 ft and the UMD drive doesn't close proper now).
The main reason 360 has so many hardware faults is that MS did this type of move right from the get go...contracting multiple companies to produce different parts of the console and not doing much management on the hardware side of their own....hence the ROD problems....
This also seems abit desperate as well, as we all know Sony didn't make a huge profit it's last fiscal year, and is still taking losses....what have we seen recently ? Them selling off subsidiaries and now a microchip plant in order to get some quick cash so that they can try and re-coup.....
I don't think it sounds good at all..
Why pay so much money only to sabotage the PS3? And you also dont seem to relize that if there is a problem Sony could always rely on Asustek and Hon Hai Precision to manufacture the PS3's, also other company's would realize that Toshiba isn't a clean company and that they use dirty underhanded practices, if anything it would be stupid of Toshiba to mess things up.
Sony is going to get close to a billion dollars for the facility....Toshiba is getting a ridiculous deal on a top-of-the-line microchip facility....it costs 2-3 billion to build a plant from the ground up....Toshiba is getting a good deal and Sony is getting much needed cash.
The problem lies in the fact that when you have to deal with multiple parties, more complications will arise, the more parties you have to deal with to get a final product...the more problems you will have.....look at MS...