For those who think the investment Sony put into making the cell is a lot, it's not. $1.7 billion dollars to develop a new CPU isn't much at all, especially when it's designed for such broad application (it's used for far more than the PS3, and meant for even more than it's seeing use in currently). Then again, $1.7b was Sony's investment... who knows what IBM and Toshiba have put in.

For those who think Sony selling this factory is a bad sign, it's not. We all know Sony has been in trouble, and this just indicates that they know what steps to take to alleviate their troubles. This move will actually allow them to recouperate a lot of their initial costs AND it should end up making the Cell processors a little bit cheaper since it's indicated that Toshiba could retool the factory for less than what it'd cost Sony. That means 65nm should be cheaper than if Sony did it themselves, and the same would no doubt apply to the 45nm process that is currently in development.

So now Sony is essentially forced to pawn off its investments to presumably keep their floundering PlayStation franchise afloat? Even more remarkable is the fact that individuals here seem to be trying to spin this as being a good thing.

Dbl Post (somehow)

What bothers me is that it will benefit Sony ONLY in the short term.

While selling the plant will gain them Several hundred million, To re-purchase all the Cell chips over a period of 1 - 2 years (Maybe it could take 4 - 5 years) will cost them more then the several hundred million they'll be getting now for it, or if they manufactured these chips themselves. (or contracted to Sell these chips elsewhere)

Anyone who says selling a plant will make things cheaper for Sony must not really understand what it is to be a manufacturer??? -Unless of course the plant is already running at a major loss.

If the company was financially stable they would be keeping this plant as in the long run, (2 years +) they would be making more of a profit then what they would selling it now. - Especially since the product they manufacture is used in their own system, (what happens when the PS3 becomes $350 or $300 and sells much faster - they'll require many more cell chips), and it WILL be used in many other products in the future. (Especially since Sony has claimed this to be the processor of the future).

Selling $2.7 Billion of their Financial Holdings Company, Selling a manufacturing plant which over time will net them a higher profit then the lump sum they would get now, (EDIT: Being maxed out on loans, having at least $2.4 Billion tied up with unsold PS3's) -these do not seem like the actions of a company that is secure.

I mean Yes, selling these things to streamline their business is in fact a great thing for Sony as they can re-invest their finances in areas that are currently successful (Electronics). The problem with this however is that they are going to become a much smaller company overall.

There really are too many factors and possibilities here to read overmuch into it.

Interesting to see the various takes/spins on it though.

OH WOW!!!!!111 Winning the format wars is like winning the French Revolution. Sure, you won, but your still France.

I think a lot of people are spinning this. "OHH, 400$ PS3". First, like with many systems before itr, even a price cut wont save it. Look at the Gamecube.

 I think this is more bad then good. Chances are, Sony is selling it to recoperate loses. But, most likely senario is that Sony isn't going to be as agressive in the console industry. At 16% and no big hitters to compete with the competion, things aren't looking good for the Playstation line. I beleive they relize that production is going to be slow for the entire generation no matter what they do. They are giving up the factory to recoperate loses and to save them money in the long run. With loses as high as they are for the PS3, it's doubtful this is spelling a 400$ PS3.

Magera, for that factory to continue producing Cell chips that will be used in the PS3 it'd need to be retooled. That means they'd have to dump more money into a venture that isn't putting them in the best of possitions. If they sell it to Toshiba, then they save themselves that cost while recouperating other losses.

Really, if Toshiba can take over and produce Cell chips at a lower price per unit, then Sony can save themselves money by buying the chips from them. 65nm Cells are going to be a lot less expensive than 90nm Cells, but it wouldn't be if Sony was bearing the cost of retooling.

Besides, if the factory was making them money, obviously they wouldn't sell it.

The reality is you cannot spin this into a great thing when you take into account the general context. Which is what some posters are neglecting. You have to look at the entire picture. Sony has taken some serious losses too numerous to go into. Consider recalls, poor product performance, poor currency exchange rates, technology reinvestment on a fast curve, excessive litigation, and a highly competitive market driving down prices. All these things factor together to justify the current situation.

A situation where Sony has terminated thousands of employees globally this year alone. Has had to sell consumer goods often at cost. Has had to take out massive loans. Has had to finalize a number of settlements, and finally much of their assets are locked up in stock, or under performing divisions.

I agree that this is a smart move for Sony, but only because the recent moves leading up to it were so poor. They worked themselves into a hole that they have to effectively sell their way out of. The company has to trim itself down. That might sound good to the typical booster, but that also means that Sony might not be as aggressive as they would like. Who would sell off a lot of assets, and curb staff in order to take huge risks. Which is what they are hoping for. They are hoping Sony slashes the price of their electronics below cost, and invest more in support related development. In the case of the PS3 more first party games.

I know its not great news. When you hear a company is continually selling assets, cutting jobs, settling out of court, having drastic price cuts, and is under performing in two very public sectors that they have invested billions in. So how can you look at another asset being sold off as a good omen. When everything else looks like a big negative?