I've noticed that Sony and Microsoft have both dropped their die sizes for their CPU's twice now yet we still haven't heard anything about Nintendo's die sizes shrinking.  I know the Wii's cpu is much smaller then the PS3's or 360's so it's not an urgent thing to get shrunk right away but you'd think that IBM would want to shrink the CPU anyway to double the amount they can make and double their profit on the CPU.  It makes even more sense for ATI to want to maximize it's profit margins on anything it can given AMD's massive debt. 

Or has the Wii already gotten a die shrink and we just haven't heard about it yet?  Or would we ever find out if and when it does happen?

"Or has the Wii already gotten a die shrink and we just haven't heard about it yet?"

Who cares. Due to its low performance the Wii has no problems with Heat or size. So its pretty irrelevant to the consumer. Besides Nintendo is still selling everything they can produce so they won't drop the price even if production was a bit cheaper. (And since both GPU and CPU are essentially year old designs they will be cheap anyway so the price improvements won't be so great)

It seems to me that due to it's already small size there isn't a huge motivation to publicize any die shrink. They have revised the motherboard a couple of times already so them may be using smaller chips.

I could be wrong but I suspect Nintendo is holding off on moving to the 45nm process until they have re-engineered the Broadway and Hollywood processors to fit on a single chip, and they could be designing a "slim" Wii using this chip along with a lap-top (like) optical drive which is much smaller.

On top of that, I think that Nintendo's main focus with the Wii's Hardware at the moment is to increase production.

From wiki on the G3 range of PowerPC chips:

"In particular, IBM has no public plans to produce a 750-based microprocessor with better than 90 nm manufacturing technology, effectively phasing it out as a commodity chip competitive in such markets as networking equipment."

http://en.wikipedia.org/wiki/PowerPC_G3

Why would you want a smaller Wii ? It's fine as it is imo.

for the sake of sony and Microsoft they better hope they dont make a cheaper to produce wii

Nintendo never gave any data about how powerfull the GPU and CPU of the Wii are (somewhere it states 733Mhz and something else but that info isn't from Nintendo...)

So, Nintendo could have put in new chips without letting the world know Or, since it's a modified Gamecube chipset they are already at 45Nm 

I don't think they'd go with a different form factor for the DVD drive unless it can be consistent or improve on both seek times and read speeds.  Certain games require load times to be complete within specific windows (Metroid Prime, for example) and that's why Nintendo would have to be careful when changing the DVD drive.

they really should shrink them, Nintendo approach to technology is getting ridiculess.