Sony have started production of a 65nm Cell processor which is cheaper to produce than the current 90nm processor included in the current PS3 consoles, and also produces less heat. Sony have not yet stated whether the new PS3’s to go on sale in Europe in March will be based on the 90nm Cell or the 65nm version.
Sony are also planning on ending in-house production of the chip in order to save costs, since the chip is already being produced by third party companies such as Taiwan Semiconductor Manufacturing Co. and United Microelectronics.