Will Sony Reduce Prices and Heat with 45nm Chips?

Reportedly we’re going to see smaller 45 nanometer cell processors in 2009 which leads to similar cost savings as we saw in the Xbox 360 hardware. Cost savings appear on the manufacturing side, of course, along with less power consumed by the processor leading to less heat generated by the console.

The Xbox 360 was able to benefit from chip reduction when for stability and overall heat issues, although the stability is still out for debate at the moment. The concept is fairly simple to understand; heat causes problems in closed systems with few fans and a high degree of complex components. Reduce the heat means reducing the overall need to cool and get air flow into the hot little box.

Console hardware is owned by a broad audience, not all of which understand technology and its ability to boil an egg. Consumers toss consoles and their power supplies in closed cases within their entertainment system and restrict air flow further. Any reduction in heat is a good thing for the console developer.

We’re not guaranteed, however, to see cost savings. Microsoft passed the cost savings to the consumer, recently, but went awhile with their lower-cost “Falcon Chipset” received such a cut. They were, more than likely, trying to recover some of the expenses associated with creating the system and cleaning up the disaster that was the red rings of light.

Will Sony do the same? As the year rolls on into 2009 and these processors start to hit store shelves, what benefit will we have, as the buyer? With the 360, people would scamper out with flashlights and manufacturing codes to find the infamous stable Xbox 360PlayStation gamers haven’t had such a need for heat reduction; they’ve got a need for cost reduction.

Sony’s taken a lot of heat for their high priced Trojan blu-ray appliance along with substantial costs for winning the format war. They have a 10-year plan for the PlayStation 3 and price reductions may definitely accelerate their plan of dominance before Microsoft tosses out some next-generation news.

The huge boost in 360 sales prior to their price cut was fairly significant in the market, presumably Sony would get a similar pop in retail. Gamers want cheap PlayStation 3‘s now, not in 2009, but the idea of a price reduction is always a nice incentive for future buyers to consider.

Of course, Sony would never talk to this topic as the threat of consumers holding out for a price drop would be way too high to take such a risk.

Anyone forsee a price drop for PS3? Would that intice you to buy?

(Thanks, Engadget)

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Xbox 360 Price Drop: July 6th?Xbox 360 Price Drop: July 6th?

The new rumor, based on a K-Mart sales sheet, is stating we’re going to see an Xbox 360 Premium price drop this summer (July 6th, 2008). The new price is said to be USD $299, down USD $50 from the last price drop on the 360 hardware.

The sales sheet only shows the 20GB Premium product, but this is probably going to hit all units to keep pricing competitive. This wouldn’t be the first time a price drop has been slipped from a sales sheet for a current generation console and we’re sure Microsoft will deny it this time as well.

This brings the console closer to a Wii price tag, making it much more desirable by the average gamer; will Wii respond with a price drop? More than likely the answer would be “no” due to their inability to keep up with demand. The dry channels for Wii consoles makes the product highly desired but also impossible to promote and market further than saying “we have Wii in stock” because demand is just so high.

Sony will have to watch out, their PS3 product is catching up in terms of hype and demand but a drop in 360 price will yet again put them behind the 8-ball in terms of competitive pricing.

Will you consider a 360 for $299?

(Thanks, 1up)