Sony invests in new chip maker

PS3 maker teams up with Qimonda in new company to cut costs, design custom DRAM for consumer electronics.

When making machines as complex as the PlayStation 3 and PlayStation Portable, every little bit helps when it comes to controlling costs. Sony today announced a joint venture with Qimonda that might help it reduce the manufacturing expenses of its latest game systems.

The joint venture, Qcreatic Design, will be tasked with designing new high-performance, low-power DRAM memory chips for "consumer and graphic applications." Both the PS3 and the PSP use DRAM. An emphasis for the new company will be creating chips that are tailored specifically to the needs of the machines that use them.

"This deal allows us to combine Sony's chip-designing ability with Qimonda's chip-making ability," Sony president Ryoji Chubachi told the Bloomberg news service in an interview today. "That way, we can share a roadmap to cut costs."

Cutting costs is particularly important for Sony Computer Entertainment, which loses money on each unit of PS3 console it sells. During the company's last quarter, the division lost about $237 million.

The new company will start off with 30 designers, and is expected to begin operations in Tokyo later this year.

87 Comments

  • zpxkjp

    Posted Oct 3, 2007 12:57 pm PT

    good news.

  • ShmenonPie

    Posted Oct 3, 2007 12:45 pm PT

    Cool, I hope this puts sony into a profit on each PS3 they sell, that'd be really great! So long as the quality remans the same of course.

  • dr_jashugan

    Posted Oct 3, 2007 11:57 am PT

    Smart move Sony. Hope this contributes to price cuts for the PS3.

  • McGregor

    Posted Oct 3, 2007 10:43 am PT

    good for sony, if they can offset some of their losses (whether they pass savings to consumers is not relevant) then maybe they can start producing some great games. which will make owning a ps3 worth it.

    for the record i don't own a ps3.

  • Doolum

    Posted Oct 3, 2007 9:42 am PT

    good news.potential PS3 and PSP price cuts in the near future.

  • Agermemnon

    Posted Oct 3, 2007 9:41 am PT

    This cost saving wont be passed down to consumer level otherwise what would have been the point ? they would still be making a loss per unit

  • The_Weekend

    Posted Oct 3, 2007 7:01 am PT

    Haha ... why didn't they consider that in the first place? then we all would have cheaper systems than now!

  • MarcjinJaume

    Posted Oct 3, 2007 6:59 am PT

    perhaps the next microsoft console will be using some of the technological aspects sony is developing now
    Thats why I prefer sony, they seem to have very similar future aspirations for computer entertainment to mine. But microsoft did a step back when started making console games because everybody knows that computer games can be even better in all aspects than console games, that means they just thought they could earn some money with that. Insulting (lol).

  • LegionOSH

    Posted Oct 3, 2007 6:55 am PT

    ..and for those unfortunate enough not have have read my original post here it is in its entirety..

    ******************************************************************

    H8s2spooge..

    ..first off no need for name calling. A lot of people posting here have what they feel are valid opinions, and like it or not some of them are valid. With your best retort being calling them names it obviously shows your level of intelligence and your character as a person...tsk, tsk..

    I don't have a lot of time to write so I have to keep this (relatively) brief.

    In regards to the PSN being "as good if not better than XBOX Live", I am afraid YOU are the one with the mental disability.

    The ONLY people who say the PSN is anywhere near (much less better) than XBOX Live are the ones who A) have never actually TRIED XBOX live or B) Sony fanboys looking for a reason to justify their purchase..or the ones saying $7 a month is too much. If you own a PS3 and you are complaining about $7 a month then maybe you shouldn't own a PS3. I mean I game on a pretty strict budget but come on...$7?

    For those who are unbiased XBOX Live is several levels above PSN. There is simply no comparison. While PSN is free, free isn't always better...as the old adage goes "you get what you pay for"..

    ..and before you start with the comments yes I DO own a PS3. It currently handles my PS2 games and my Blu-Ray movies (as my 360 handles my HD-DVD movies). When the PS3 has good exclusive games that aren't a 6 hour epic with no replay value or a 4.5 title (and when the 3rd party games aren't superior on the 360) I'll be sure to use it for games as well..

    Maybe it's YOU who has the chip on the shoulder trying to justify your purchase to yourself.

    Personally I am glad I own a 60GB with the EE hardware, but I'll be happier when there are games on it worth owning (FF XIII and hopefuly MGS4..if it doesn't go to the 360)..

    ..now you were saying?...

    Kevin

    legionosh@msn.com

  • LegionOSH

    Posted Oct 3, 2007 6:34 am PT

    H8s2spooge..and all other Sony Fanboys..

    wow....I haven't had a negative here in a while..but I don't think I've ever had a -4.

    I must have REALLY irked you and your brethren .

    Or is this all the Sony fanboys ONLY way to respond to my comments?

    Since you can't logically reply you just vote me down into the unseen ranks?

    Because my post wasn't overwhelmingly positive the only thing you fanboys can do is rank me down?

    I guess I am shocked because I am used to intelligent responses for my posts..

    ..but I guess I am not to NON Sony fanboys for that.

    Kevin

    legionosh@msn.com

  • ElmorePOW

    Posted Oct 3, 2007 12:57 am PT

    I love their thinking. They don't start making low-tech consoles (Nintendo), but they want to serve the best - cheaper. Players win.

  • kratos_karmakar

    Posted Oct 3, 2007 12:34 am PT

    i hav said it time and time again but no 1 seems to ever lend an ear to me. the ps3s true power, which has not been shown yet, lies in its complex engineering.u dont think it that sony threw away that much $$$ in research behind their machine so that they cud get a product that was not revolutionary do u?the high cost manufacturing these machines says the whole story about better engineering and wat ppl constantly complain bout is the cost when sony is actually doing us a favor by selling us the most advanced tech at its own loss at a pretty affordable price . o so its games u worry bout? ppl speak bout 360 games as if gears was a launch title for the 360. well if u havent noticed it wasnt. 1st came a wave of badly textured faulty games and the reason they over look this fact is becoz 360 was the 1st next gen machine to b launched in the next gen race. at that time ppl were so blinded by the developer-exaggerated blooming that they werent being critic any more. but by the time the ps3 arrived every 1 was already used to next gen so easily they forgot that always the 1st games on a console pretty much suck,which by the way sony handled much better than MS,(launch titles i mean) and it takes bout a year for developers to get acquainted with the dev kits and machine specs and since the ps3 is so complex, which also means developer unfriendly unlike the 360 , its taken som time to reach its working stage which i can assure u we in the coming year 08. 360 fanboys always think im trying to b smug but its a fact that the ps3 is more powerful due to its engineering never mind the technology behind the cell broad band processor which by the way the us military wanted or use.

  • Zoomer30

    Posted Oct 2, 2007 10:55 pm PT

    The PS3 just needs time. 360 fans have a short memroy, some of the first games for the 360 were real dogs (the first Madden make the current one look like a masterpiece).

  • kavadias1981

    Posted Oct 2, 2007 10:40 pm PT

    Whatever allows me to be able to finally afford a PS3, is fine by me.

  • Hell-Fire21

    Posted Oct 2, 2007 8:49 pm PT

    Yikes, my back hurts. I think we should all look around to see how much money we can save...not by switching to Geico. Lol

  • roof_sniper

    Posted Oct 2, 2007 8:45 pm PT

    i like everyone commenting saying how the ps3 has bad games. for some reason no one thinks that the 360 has been at double as long as the 360 and the 360 didn't have really any good games until a year after it was out. the ps3 hasn't even been out a year. if u don't believe me u can even check gamespot's reviews of the 360 games until a year after it came out.

  • Hobbes2099

    Posted Oct 2, 2007 8:43 pm PT

    quick response to pandadude01 (well, i hope i can keep it short);

    basically, Sony IS losing money on each unit sold. The original price was tagged well over the $900 bar; this is quite true and you can look it up just about any news mag (online or otherwise); the business model follows the idea that there are enough legit users to purchase legit game copies to make up for the lost money. PS3 should last for at least 5 to 7 seven years (SDK and dev kits are slowly upgraded to make games easier to make, adding to library base, better graphics etc). if you add the option of purchasing small, casual $5.00 games from PSN, then its easier to get those 237 mill back. It makes sense to lose on the console just to make up on the titles.

  • insidious13

    Posted Oct 2, 2007 8:31 pm PT

    Sony is getting prety desperate hehe

  • pandadude01

    Posted Oct 2, 2007 7:03 pm PT

    'This is wonderful news for Sony, but not necessarily anything special for us consumers. Just because it saves Sony money, doesn't mean that they are going to pass the savings on to us, via price cuts. They may just pocket that extra money, since they apparently have lost about $237 million during the last quarter. Personally, I am getting tired of news articles stating that 'so and so' company has lost money on each console that they sell. If that were the case, they would not produce more of that product to sell, because they would not be making a profit. That line is complete and utter BS. These companies are not losing money on consoles. If they were, their gaming sectors would go out of business. They are making enough money to want to continue with their gaming sector, so obviously they aren't doing too bad. But if what they say is true (regarding losing money on PS3's), if they were to be able to cut costs significantly AND pass the savings on to us, still with a significant gain in profit, then they would be doing really well, and consumers would get to benefit from the financial aspect of that. Lets hope that that price comes down significantly'

    My understanding is that they actually are losing money on consoles. By selling them cheaper than they can afford, they somehow benefit in the long run if they can control a bigger portion of the industry. Then you have the format war of HDDVD v BD, and it gives them another incentive to sell more consoles even if it's at a loss. I do not know the ins and outs of this but I think what I have just explained isn't miles away from the truth. I stand to be corrected though.

  • kcha295

    Posted Oct 2, 2007 6:45 pm PT

    just wondering put a plus if you think that we're able to have the ps3 wii and xbox 360 together, and put a minus if you think ones gotta go not cuz u dont like it but you think its too many consoles

  • chickmagnet_1

    Posted Oct 2, 2007 6:44 pm PT

    This is wonderful news for Sony, but not necessarily anything special for us consumers. Just because it saves Sony money, doesn't mean that they are going to pass the savings on to us, via price cuts. They may just pocket that extra money, since they apparently have lost about $237 million during the last quarter. Personally, I am getting tired of news articles stating that 'so and so' company has lost money on each console that they sell. If that were the case, they would not produce more of that product to sell, because they would not be making a profit. That line is complete and utter BS. These companies are not losing money on consoles. If they were, their gaming sectors would go out of business. They are making enough money to want to continue with their gaming sector, so obviously they aren't doing too bad. But if what they say is true (regarding losing money on PS3's), if they were to be able to cut costs significantly AND pass the savings on to us, still with a significant gain in profit, then they would be doing really well, and consumers would get to benefit from the financial aspect of that. Lets hope that that price comes down significantly!

  • PoisedYeti

    Posted Oct 2, 2007 6:32 pm PT

    where is this console war? i was just playing around then all of a sudden i hear a war is going on...i have been recruited it seems! oh my

  • Dogswithguns

    Posted Oct 2, 2007 6:19 pm PT

    Cool. great system and it's even less expensive. awesome.

  • heretic92

    Posted Oct 2, 2007 6:01 pm PT

    flubs ps3 is basically guarenteed to come at least second anyway this will help it beat the wii since in my opinion that has only this holiday season left in it

  • Mr_Flubs

    Posted Oct 2, 2007 5:42 pm PT

    If this lowers the PS3's price than sony might actually have a chance of getting second in the console war because price and games is the only thing stopping it from being a success. And alot of awesome games are coming out for the PS3 in the next couple months.

  • comthitnuong

    Posted Oct 2, 2007 5:23 pm PT

    Cutting costs is always good. Sony will definitely need to do that if they plan to make another price cut before the holiday season.

  • stickstick86

    Posted Oct 2, 2007 5:11 pm PT

    cool but i hope quality be the same...

  • madaseyer

    Posted Oct 2, 2007 5:10 pm PT

    maybe Cheaper Price costs alright but im just gonna get another one this October

  • HXCDEW

    Posted Oct 2, 2007 4:22 pm PT

    Cool. Lower costs means we could potentially have a PS3 pricecut soon. Good for gamers.

  • clawboy

    Posted Oct 2, 2007 4:20 pm PT

    I'm all for it as long as the quality doesn't suffer.

  • PSdual_wielder

    Posted Oct 2, 2007 4:19 pm PT

    the-darcwake, I appreciate your love for PS3, but what kind of a line is that? Or are you just waiting for someone to say that.

  • Exeed_Orbit

    Posted Oct 2, 2007 3:37 pm PT

    This is some good news for Sony. But unfortunately this change will mean basically next to nothing for consumers. If the price drop (399) is actually legit, this will not make Sony drop the price even more. But hopefully the money saved will be used wisely by Sony.

  • the-darcwake

    Posted Oct 2, 2007 3:36 pm PT

    PS3 is the greatest invention since Matt Damon

  • Soulreaver9

    Posted Oct 2, 2007 3:34 pm PT

    While i agree with you legion that xbox live is a easy to afford service, i don't see anything different im getting from them that im getting from psn, you play on-line games you go through the same routine of joining game after game till you find a decent game and yet you still run into a game full of no mic's or ones that are kept on mute at all times and for good reason. All in all at the end of the day i know i had to pay for jus the game for a bad experience on my ps3 and not a service and game with my 360.

  • GrimBee

    Posted Oct 2, 2007 3:20 pm PT

    Believe me - this isn't about pushing the PS3 - its about making a "sony everything" market.
    A place where your TV will be sony, the media format will be sony and the games (and even phones) will be sony. Hence the reasons why they have their own memorycards for those devices.
    And even their own tapes for their old video cameras.

    DVD is an insult to sony. They create products to make Toshiba money.
    So now blu-ray is out to make SONY money.
    The more they invest on making their market an everything market - the more dominance they will hold and then people will be making players and devices for SONY media formats--

    In effect, making sony money all the time.

    Its not just about games and things now.

  • lukey9493

    Posted Oct 2, 2007 3:17 pm PT

    groovy

  • teirdome

    Posted Oct 2, 2007 3:08 pm PT

    Didn't realize how much Sony was dishing out for the console. I'm actually kinda worried about the PS3 for the first time.

  • wazzup987

    Posted Oct 2, 2007 2:57 pm PT

    well i hope they do good work wait a minute my psp still works just fine (the origanal realease moldel back from 2005) so no worries

  • Colsworl

    Posted Oct 2, 2007 2:55 pm PT

    Combining a great chip designer like Sony with a great mass producer of chips like Qimonda is just the smart idea. Well done. Hopefully this will cut costs by a good bit.

  • Bgrngod

    Posted Oct 2, 2007 2:46 pm PT

    I am already wondering what the heck a PSThree (slim PS3) would look like. Can they shrink it down as much as they did with the PSTwo?

  • tonka_92

    Posted Oct 2, 2007 2:45 pm PT

    Isn't it funny the way the Title says "Sony..." but the ms fanboys decided it was their business and they should go in and thumbs down any sony positive comments
    That's just pathetic

  • Spartan-1775

    Posted Oct 2, 2007 2:43 pm PT

    FREAKING SWEET!

  • jasonharris48

    Posted Oct 2, 2007 2:40 pm PT

    H8s2spooge you are one funny guy.

  • playstation_wii

    Posted Oct 2, 2007 2:37 pm PT

    As long as there is still a PS3!

  • Hokkie

    Posted Oct 2, 2007 2:33 pm PT

    Great, lets hope that they save SO much on this chip that it makes the console more affordable....match 360

  • bob_dartagnan

    Posted Oct 2, 2007 2:14 pm PT

    Cut the costs but don't compromise the quality like a certain other console.

  • winner-ps3

    Posted Oct 2, 2007 2:07 pm PT

    nice! cuttigng cost is the only hurdle sony has!

  • nintendorocks

    Posted Oct 2, 2007 2:06 pm PT

    Good news for Sony. They need all the cost cuts they can get.

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