Sony plans to sell PS3 chip production facilities to Toshiba
Sony may be planning to sell its chip production facilities to Toshiba for $865 million, if reports by the AP and Reuters are to be believed. The production facilities will include the lines that manufacture the PlayStation 3's Cell chip, and may or may not include the manufacturing of image sensors, depending on whether you believe Reuters or the AP's report. After the sale, Sony will probably continue to purchase chips from the facilities, with the company's game unit possibly also taking a stake in exchange for some kind of operational control. The deal isn't expected to go down for a few months yet, so even if there any problems in the handover, the PS3's production shouldn't see any short term issues. Sony and Toshiba have already responded to these reports, but managed to neither confirm nor deny their veracity to Japanese publication ITMedia.[Thanks to everyone who sent this in]
Read - Sony may sell game chip (Reuters)
Read - Sony to sell advanced chip operations (IHT)
Read - Toshiba / Sony neither confirm or deny the news (ITMedia)
Reader Comments (Page 1 of 1)
Josh L @ Sep 15th 2007 3:11PM
As someone who isn't an economist, can anyone fill me in on whether this will affect the consumer? Will it change the price of the PS3, or any other SONY products that use these? Or is this mainly just trivia for people who are into info like this?
Alan Partridge @ Sep 15th 2007 4:16PM
I think theres no chance of Sony increasing the price of the PS3, if it does cost them more they'll look to recoup the money from other streams eg An ncrease in advertising in Playstation Home
Alan Partridge @ Sep 15th 2007 4:17PM
I think theres no chance of Sony increasing the price of the PS3, if it does cost them more they'll look to recoup the money from other streams eg An ncrease in advertising in Playstation Home
Temple @ Sep 15th 2007 4:46PM
Toshiba was also involved with PS2 production. Cell is a joint effort by Sony/Toshiba/IBM. Doesn't change the dynamics of the PS3's current business model. Sony and Toshiba may be bitter rivals, but they are also allies on other fronts.
Ihar `Philips` Filipau @ Sep 15th 2007 6:57PM
Sounds like they simply selling real estate - factory which produces Cell chips.
Seems they are short on cache. Nothing more.
Short term, it might result in price hike. But in mid/long term is would result in price decrease, since Toshiba is more involved in electronics market and knows better (and more) of opportunities for chips like that. (Or at least I haven't heard of Sony producing electronic parts. Toshiba is well known for its semiconductors.)
Ryan Smith @ Sep 15th 2007 3:17PM
I guess Sony needs some money badly, and they figure they are not going to be needing very many chips anyway for the PS3.
Alex @ Sep 15th 2007 3:30PM
Toshiba was one of the main developers of the Cell microprocessor but so far have yet to use it in anything afaik. Buying the manufacturing plant from Sony along with having a steady income stream (PS3 chips) is probably a good deal for Toshiba and would allow them to make some chips for their own use (probably to put in TVs).
humpty @ Sep 15th 2007 3:19PM
Probably part of Stringer's plans to get Sony out of non-core industries. Nowadays anyone can contract a fab in Taiwan to build a chip/board/conponent for you... you dont need to bother with the operational side of it.
Ihar `Philips` Filipau @ Sep 15th 2007 7:07PM
As if it was that easy...
If you do not own factory - you cannot deliver timely.
Ask yourself, why AMD is pushing so hard to build more factories. To complete with two factories against Intel with dozen (IIRC 12 was last count?) one need lots of courage.
Company of size of Sony can afford to build such factory. But they are rarely interested in operating such facilities - especially in competitive markets.
By having own Cell factory, Sony ensured that at least one crucial component of PS3 was delivered at time. Now, they are hoping more companies would adapt/produce Cell and prices on it would go down. Celling factory could be (unintentional) part of the plan. Though I smell that they need cache. Costly PS3 and recent instability of Nikkei - all adds pressure on such big company as Sony.
eddie @ Sep 15th 2007 3:36PM
Humpty: Outsourcing production the Cell processor? That's quite a tall order for any old "fab in Taiwan"
Kurian @ Sep 15th 2007 3:42PM
Some things cannot just be made on standard machines.
You have to make the machine that makes the chip.
Like Intel's CPU's.
L.Rawlins @ Sep 15th 2007 3:57PM
It would be hilarious if they started manufacturing HD-DVD players in Sonys old facilities.
Phour ZwanZig @ Sep 15th 2007 6:19PM
Yeah thatd be funny.. But really if Sony is sellin the chip manu. does that mean they are basicly sell out of BluRay too.. Cuz aint it their chips that make the so-called "magic" happen????
If so, It really sounds to me that Sony doesnt have faith in the Cell or BluRay anymore.. Funny if thats the case..
Ihar `Philips` Filipau @ Sep 15th 2007 7:11PM
I wouldn't be much surprised really.
Long time ago I have seen a "map": VHS player producers vs. VHS player brands. It was all haywire.
Market competition - PR - is one thing.
Profits by lending production lines and/or producing parts for competitors - is absolutely another thing.
vivek @ Sep 15th 2007 4:15PM
how are they gonna pull it off??
hanna @ Sep 15th 2007 4:33PM
it's certainly made in thaiwan
cybersteve @ Sep 15th 2007 5:04PM
How does that affect the blue ray/HD format war?
Phour ZwanZig @ Sep 15th 2007 6:22PM
Thats exactly what Im wondering.. Does this include the Chips in their BluRay players.. Cuz to me as Ive said above, It would be Sony sellin outta their own product cuz their losing faith in it already.. Oh maybe it also could give them someone to point fingers at when things arent lookin good for them.. hmm?
Andir3.0 @ Sep 15th 2007 7:44PM
I think since this isn't confirmed by either side it's just stupid viral fud. Why the hell would Sony sell the Cell manufacturing plant to Toshiba, lead backer of HD DVD? Think about it.
hemmy @ Sep 15th 2007 9:35PM
@Andir3.0
Sony and Toshiba have been partners for a long time, and that's not going to change. Toshiba helped design and manufacture the chips in the PS2 (what constituted the Emotion Engine). Toshiba is one of three founders of the Cell processor (IBM and Sony being the other two), and since Toshiba is huge in the semiconductor field, the sale of the plant wouldn't be out of line and beneficial to both parties. It has nothing to do with HDDVD.
Slvrgun @ Sep 15th 2007 5:41PM
So will we see some PS3s that accidentally receive HDDVD?
Vizion @ Sep 15th 2007 6:07PM
Wow, I usually don't say anything, but this article is poorly written :\
John M @ Sep 16th 2007 6:00PM
its engadget... They can't write...all they do is look around the web for blogs and articles and surmize it in a short paragrapgh. No original content other than the occassional unboxing or interview. Its just one place to get info that steals errrr sites others.
Ryan P @ Sep 15th 2007 8:41PM
I can't wait for my Cell power PS-Grill.
Seriously though, any chance of getting Cell in some of the knock off devices? I'd love to see a Cell powered iphone fake that plays NES roms.
Matt Blatz @ Sep 16th 2007 1:40AM
I just read the article again and you're right, its pretty pathetic. They need me to write. Hire me. Now.
bharatk12 @ Sep 16th 2007 1:26AM
engadget forgot the mention 1 thing
SONY will sell the FACTORY but shift the employees to SONY . toshiba will just get the factory.