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Sony and Microsoft look to 65nm to reduce costs

Posted Feb 2, 2007 at 3:22PM EST by QJ Staff

Listed in: PS3, Xbox 360 Tags: Digitimes, iSuppli, Microsoft, playstation 3 updates, Sony

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Microsoft and Sony are both aggressively preparing to migrate chief components of their latest consoles to 65nm silicon-on-Insulator (SOI) technology production in order to help shrink the gap between retail prices and production costs.

iSuppli's research shows that at present, manufacturing costs of the 20GB and 60GB PS3 are around US$ 306.85 and US$ 241.35 more than current retail prices. iSuppli also notes of Microsoft's situation saying that the Xbox 360 Premium package priced at $US 399 actually costs the company US$ 525 to produce. The DigiTimes reports that:

during a recent Sony investor conference, the company said that it has already started production of various sized chipsets on 65nm node and noted that die-size could be shrunk by 40% in comparison to 90nm process, indicating that corresponding costs could be reduced along with the reduction in die size.

On the Microsoft side of things, they've announced last April that they would start producing Xbox 360 CPUs on 65nm SOI technology in the first quarter of 2007. However, DigiTimes does note that rumors suggest that the move to 65nm might be delayed to mid-2007.

A recent Chinese-language Commercial Times report comments that if 65nm manufacturing is introduced, three key Xbox 360 components - the CPU, northbridge, and graphics chip - may see their prices reduced by 30% to 40%.

On the Sony side, they add that they also plan to reduce the number of parts in the PS3 in an attempt to see "drastic" cost reductions.

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there is no benefit to the consumer going to a smaller chip except maybe runneing a little cooler. If you read the column, it say they are going to use fewer parts,and try to cut as many corners as possible to cut costs enough so they are not lossing money..

That would make me want to get a current PS3 ASAP!! I'm glad i got the 1st gen unit.

The current units are are huge bargin imho.

# I would not buy a PS3 or 360 YET ! — Guest 2007-02-03 02:21

PS3 20 gig version $241.35 loss per console.

360 20 gig version $126 LOSS per console.

Thats some big losses now wonder they are both panicking.

No arguing about which machine etc please but I would NOT buy a ps3 or a 360 until these new cooler and quieter fanned systems are released, they are so close now it would be mad to buy what is in effect a Mk1 version which will proberly cost you more than the new soon to be released MK2 version.

# ? — Guest 2007-02-03 03:56

The PS3 is already quiet. The Xbox is the one that sounds like Pratt + Whitney supplied some parts.

# ... — Guest 2007-02-03 07:33

I only wish it had the revolutionary dust collecting paint that the PS3 is so famous for.

# ? = boring — Guest 2007-02-03 09:04

? your comment is boring untrue and totally pointless I suggest you get a girlfriend ASAP.

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