via Next Generation

Hirai said during a Thursday PlayStation business briefing that Sony has been cutting PS3 manufacturing costs by reducing the number of components and decreasing the size of chips.

"The Cell and RSX used in PS3s at launch were manufactured using a 90nm process technology. And now all PS3 Cells have shifted to 65nm process technology since last holiday season," he said.

The smaller chip technology runs more efficiently and costs less to produce.

While the improved Cell is in circulation, the RSX graphics chip, created in tandem with Nvidia, still uses 90nm technology.

But a more efficient RSX will be in PS3s shortly, Hirai says. "As for RSX, 65nm process technology has begun this year already, and will be ready for installment in autumn."