Analysts: PS3 to Get Smaller Hardware, Breaking-Even Soon
Nikko-Citigroup has upgrade their rating for Sony, and cited one of their reasons being the anticipation of the console breaking even this August. So the prediction from Nikko-Citigroup is that Sony will be shrinking the console's architecture sometime soon, which will help lower manufacturing costs. But, whether or not the shrinking is external or internal, we don't know.
Personally, we wouldn't bet on an externally revised or smaller PlayStation 3 for another two years, at the very least. Historically, consoles shrink after about 4-5 years of market life, and the PS3 is only now approaching two years. This prediction from Nikko-Citigroup is in-line with what Sony's CFO had to say about breaking-even, stating sometime in the second-half of 2008. Analysts are expecting the new chipset to compose of a smaller Cell processor, measuring less than 65nm, and the RSX graphics chip measuring less than 90nm.
4/21/2008 Arnold Katayev