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 360… PlayStation 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)

Once upon a time Rare though they had a winner; a game which would end all the confusion between a hardcore console and a kiddie console. Viva Piñata was supposed to change the way we think about Xbox 360 gaming by showing off a title that would make children feel more inclined to game on a “big boys console.”
The success of the Nintendo console, the Wii, has proven to change the industry in many new and creative ways including reinvigorating slow product sales at Toys R Us. “The company went from a loss of $42 million at the same time last year to a profit of $13 million for the three months ended August 2nd,” says
This issue is that the PS3 has a Blu-Ray drive in the system, and that won’t change.
This issue is that the PS3 has a Blu-Ray drive in the system, and that won’t change.