IBM has successfully made a 45nm Cell processor, the chip behind the PS3. For those unaware, shrinking processors means for less heat generated, less power consumption, and lower price production. The original Cell processor in the PS3 was 90nm, which was then shrunk to 65nm, and now 45nm.

So what exactly does this mean for you? Well, lower priced PS3 systems in the future, mainly. The chips cost less to produce and less cooling equipment is needed since there is significantly less heat generated. Now this doesn’t mean we’ll see a price drop quickly. Sony will still need to rework the rest of the PS3 components for the 45nm Cell. And they may choose to make up money by leaving the price the same for a while.

My bet is we’ll see a price drop mid year, with 45nm introduction coming late 2008, followed by another price drop in mid 2009. I’m not betting the farm on it, but it seems pretty logical to me.

[via ArsTechnica]