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Does that mean all Sony devices will get teh Cell?

All megalithic companies become bureaucratic and inefficient over time. It makes no sense to have multiple suppliers of functionally or materially identical parts, but this is exactly what one would expect to happen over time in a huge company with semi-autonomous business divisions. Tendering a large contract from one supplier will lead to significant savings cf numerous smaller contracts with multiple suppliers. The same number of parts will still need to be produced so the number of factory floor jobs won't go down by too much (they'll still decrease because of economies of scale leading to better productivity). The number of supplier middle and upper management jobs will reduce by a lot, but people at that level has less of a hard time finding (creating) new work than factory floor workers.

The benefits will only be known when this exercise shows whether Sony has gone for the cheapest global supplier, or the one who provides the best mix of quality and price. Sony's long term reputation depends on them going for quality.



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