Well there where a statment of a Sony rep, the 40 GB woud still use a 90nm processor. Well, that was wrong:

Source IGN 

Today, Sony Computer Entertainment boss addressed the issue directly. In an interview posted at Japan's Impress Watch, Kaz Hirai confirmed that the new model uses a 65nm process for the Cell chip.

The system's RSX graphics chip, on the other hand, still uses a 90nm process. However, the shrinkage of the CPU alone was enough to cut the power usage of the system considerably.

Elsewhere in the interview, Hirai commented on the future of the backwards compatible 60 gigabyte and 20 gigabyte (still available in Japan) models. He confirmed that neither model is in production at the moment. However, he added that depending on how the market reacts, it's possible for Sony to produce them again.

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I find that quite intresting.

Maybe this is just the japanese one, because last week they denied it. All very confusing

Ahhh, I eat crow then. I just responded to sj12 that it still used 90nm from multiple sources that said otherwise. NOW sony comes out and says the opposite. Bunch of sob's.

Now I'm just confused. I'm going to say it has a 77.5nm chip and be done with it.

we do know they are not going to use 45nm chips, as they pulled out of the development team for it.

as for BC, well its nice to know their bussiness plan is flexible

It's good that they have an out, but if they go back now and reintroduce a SKU.

It already is confusing...

Actually, we don't know that. Once development is complete on the 45nm chips it may still be less expensive for them to purchase them. And since they sold their production facility, they will be purchasing their chips either way. Might as well go with whichever is the cheapest, even if they have to pay a little more per unit than they would have if they were part of the development process.

I remember back in the days when you just released a video game console and that was it... I miss those days.

They might be working on full software emulation... might be cheaper in the long run.

I really hope they don't drop BC compatible models completely - I can't imagine I would ever pick up a PS3 that doesn't play PS2 games :(

Good news about the 65nm - less power consumption = good