The PlayStation 3 may be cutting edge, but it still requires a shell the size of a grand piano to fit it all in. But a smaller version that actually fits inside a house may well be on the way thanks to some new processor magic.

With a wave of a silicon wand, Sony has reduced the size of its Cell processor, the brains behind the PS3, from 65 nanometres to 45 nm. Now it says the miniature chips will ship in 2009.

With any luck, Sony will use the new technology to make the PS3 more refined. Tinier chips would mean less cooling, less power consumption, and - crucially - a smaller cost, laying down the challenge for Memorex in the battle for budget Blu-ray.

There’s been no confirmation yet, but with bitter rivals Toshiba making use of chips in new HD-upscalers and TVs, don’t expect Sony to sit on this one.

Here's the link: http://www.electricpig.co.uk/2008/09/23/smaller-ps3-on-the-way-with-chip-breakthrough/

the way the title was phrased sounded like a confirmation , got me all excited damnit.

 Yeh me too, but it's still good news