Sony Hoping To Cut Costs Of PS3 Production

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Sony’s looking to cut down on its hardware production costs (no wonder, it’s not faring as well as expected in the next-gen console war right now), but it won’t do so by selling its semiconductor production plants as was rumored a month ago.

Instead, Sony has forged a partnership with Infineon Technologies AG to form Qreatic Design. The new company (which is expected to open its doors by the end of this year) will design and manufacture cost effective DRAM (dynamic random access memory) chips for use in the Playstation 3.

Does this cost cutting measure further prove the rumor that we’ll see a cheaper version of the PS3 before ’08? We’ll see.
 
The true question is how much will it change the PS3's capabilities (especially since that is one of their major selling points).
 
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