Sony to Sell PS3 Chip Lines to Toshiba

Sony Corp is selling its production facilities for making key microchips used in its PlayStation 3 to Toshiba Corp. The move first rumored in the Japanese magazine Nikkei, is now an official deal.

Sony has been seeking ways to lower production costs for its PS3 and other products using the microchips, pulling back from the heavy investment needed. Sony also recently closed a deal with Infineon Technologies to design chips at reduced development costs. Sony’s “Cell” microprocessor output facility in Nagasaki prefecture and “RSX” graphic chip production line in Oita prefecture, both in western Japan, will be transfered to Toshiba by March 2008.

Gamers would appear to be already benefiting from the projected savings on production costs as reflected in price drops on the 40GB and 80GB PS3.

via Reuters