No, it means their cameras are selling well.

Exactly! and repurposing can have multiple benefits too, one of the major ones being a huge tax benefit

Well the easy answer to that question is this: the cell isn't selling as well as Sony had anticipated and they are possibly scrapping one of their plants due to this lack of demand.  No matter how anyone spins it that is not a good thing for the Cell chip.   From what I understand Sony doesn't even produce the Cell chips anymore and they are outsourced to other companies (if I am mistaken please correct me).

As a whole I don't think this really matters one bit to Sony.  But my main concern as a PS3 owner is that if the cell dies the next Playstation model will not have backward compatability like the current PS3 models.  Which will really suck because I already have enough shit taking up space in my entertainment center.

By the way I am not anti-Sony. 

Don't worry :P I didn't put that question forth in that mindset, there was no reason to

and tbh, from what little we know, the only thing we can say is Sony did well for themselves in this transaction. Investors will really like the numbers. I don't think this move of not using the factory for cell but to make their cameras says absolutely nothing about their confidence in the Cell. For one, as I mentioned above, re-purposing the facility will most probably give them a huge tax benefit as well.Not sure what tax rules they follow there (I'm assuming IFRS?) but if it's anything like here, that will surely be the case.

Also this means their cameras are doing really well and that there is no need for a cell manufacturing plant at this point. Nothing more nothing less.

and tbh I think Sony will go with Cell next gen for sure as well. But only time will tell

Well, I do hope they use cell in the PS4, an upgraded, faster cell processor which can help the graphics chip just like the PS3 because that would help the backwards compatibility and also help developers since so many of them know how to use the cell right now.  Valve can actually use source engine 2 in the PS4 themselves, if Sony does this.

I just bought a Sony Handycam HD camcorder, seriously.