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starcraft said:

Where are people getting this idea that Sony has made a tonne of cost reductions and that Microsoft has been stagnant?

 

Sony's per unit manufacturing cost has been cut in half in 14 months. IBM and Toshiba have already taken both the RSX and Cell to 65nm and are actively moving toward 45nm. And while IBM finally got the Xenon to 65nm, TSMC will not have a 65nm Xenos in production until August 2008, probably around the same time as the Cell and RSX are moving to 45nm.

This is well documented by the companies working on the respective components and has been well reported by industry news. Maybe that's where people are getting the idea?