Sony reportedly to cut PS3 cost with cheaper chips

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Sony plans to lower the production cost of its PlayStation 3 game consoles by using less expensive chips, aiming to turn the operations profitable between September and next March, the Nikkei business daily reported Friday.
Starting with the European version of the PS3 that is set to debut on March 23, the paper said Sony plans to use a chip that can handle only the graphics of predecessor PlayStation 2 instead of the current chips that can handle both the computing and graphics functions for the PS2.
Sony's game unit, Sony Computer Entertainment (SCE), will distribute compatibility software on the Internet so that users can play PS2 games on the PS3, it said. Cnet has more.