Reuters is reporting that Sony may stop making the cell microprocessors. Sony Executive Deputy President Yutaka Nakagawa told Reuters the investment of 460 billion yen, around $3.8 billion USD, for next 3 years would be reduced. They are studying whether producing 45 nm chips by year 2009 in-house would have good return on investment. Starting with PS2, Sony produced the processors in-house due to lack of manufacturing capacity from chip manufacturers. Now, there are several chip makers capable of producing the chips needed by Sony to meet their needs. Sony is currently losing money on every PS3 they sell due to high cost of components. The move to reduce investment on chip manufacturing capability would allow them to be profitable in gaming division.

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