@ tanker )

no, the 65nm cell is out, but the RSX is still being manufactured in 90nm process

If this is true, it was money well spent, because it won them the format war.

November 26, 2007 - According to a report from Nikkei late last week, Toshiba is planning on switching manufacturing of the PlayStation 3's RSX graphics processor to a 65nm process next month. Currently, the chip is manufacturing using a 90nm process, the same as it's been since the system's launch.

A smaller die size for the chip can mean cheaper production costs and less heat, contributing to lower prices for the consumer, and a quieter, more reliable PS3 system.

The latest versions of the system's Cell CPU are being manufactured using a 65nm process. It is widely believed that the switch to 65nm for the Cell is one of the main reasons Sony was able to drop the PS3's price down to $399 in time for the holidays.

Nikkei also reports that Toshiba is planning on beginning manufacturing at 45nm in the latter half of the next fiscal year, and speculates that the RSX and other PlayStation 3 chips are prime candidates for the new line.

 Even though I didn't read the first page, this one of the few intellegent responses on the second page.  If, and that is a big if, the 400 million is true, Sony only paid a small chunk of it.  That bill was split by all the people in the blu ray camp.  And quite frankly, 400 million for market dominance is a pretty sweet deal.  They still have to deal with dvd which controls total movie market, but to control the hd market and watch the royalties come in is worth it.  Not to mention all the companies in the blu ray camp have movie studios where they make more money....they will be getting their investment back rather quickly.

This is just a rumor.

Warner said it chose Blu because it was selling better. And it was. All of Warner's movies sold better on Blu and that is why they switched. There was no pay off.