IBM signs chip agreement with SCE

IBM, Toshiba, Sony Corporation, and Sony Computer Entertainment have announced they've reached an agreement that will allow the three companies to jointly develop chip technology based on IBM's silicon-on-insulator technology and other technological advances in chip making. The agreement is expected to lead to lower-priced chips that can power a variety of devices ranging from computers to video game consoles.

"Having IBM and Toshiba's technologies with Sony's vast experience and knowledge of the consumer market truly makes this alliance a winning combination," said Ken Kutaragi, president and CEO of Sony Computer Entertainment and director of Sony Corporation. "Incorporation of these cutting-edge process technologies into various audio, visual, and IT products as well as into the computer entertainment system is expected to bring even higher competitive power to the entire Sony Group."

Current speculation is that this agreement is part of an earlier announcement that the companies involved were working on a processor architecture known simply as "Cell," which is expected to be the heart of the PlayStation 3. The Cell architecture will supposedly be able to streamline the transfer of 3D images, speech, and games over a broadband network. We'll have more on this story as it develops.