Sony to break out of Cell?
Toshiba earmarked to gobble firm's chip biz
Sony could be set for a big chip payday by backing away from its semiconductor biz and selling it off to Toshiba, if industry rumours prove correct.
According to several speculative reports, a sale is imminent with discussions between the two Japanese tech giants said to be at an advanced stage.
Production lines up for grabs could include Sony's Cell microprocessor which powers PlayStation 3 video games consoles.
According to today's Financial Times, Sony has invested some 200bn yen in the Cell chip.
Sony, which in recent months has faced legal action over alleged patent infringements around the technology used in its latest games console, had been planning to streamline its fabrication facilities for some time by outsourcing its non-core components.
Japanese semiconductor firms have struggled in recent years to compete against their US equivalents, such as Intel and IBM.
The FT said Toshiba could expect a price tag in the region of 100bn yen to secure the buyout. ®
COMMENTS
Why is Sony selling it's interests in the Cell?
Have you SEEN their financials of late. Sony is taking a beating right now and I imagine that 100M+ would help their balance sheet enormously, not to mention reducing their continued investment in R&D etc.
Oh ... and as to claims of "Microsoft spies in Sony management" ... riiiiiiight. Dream on!
Big deal
PS3 will still be available and your not going to buy a company and cut your sales are you.
Same thing happend when Sony and NEC mergered their Optical Business (NEC Was prime backers and suppliers to HD-DVD) of course Sony are still supplying Toshiba and MS as they are picking up royalties on both formats
Would be interested to know about the other semiconductor business tho
PLEASE kill the PS3 toshiba
If they could kill the ps3 it would save us allot of annoyance.
I WAS a playstation fan... untill all the dissapointments and delays.
Now, I am going back to PS2 for the guitar hero games. And will be getting a 360 elite for when GTA comes out. Sony, You have lost yet another customer... if only you had not delayed GTA and GT I might still be with you.
That, and the insane price tag. Plus the fact that without a HD-TV... it is just not worth it.
Microsoft spies inside Sony management....
...are trying to kill Sony off by having the Cell business and production plants sold off to Toshiba. This is a pretty basic, kindergarten level strategy move, yet it seems that they will succeed with it if no Sony manager will have the power to oppose this insane decision.
Cell has been produced by IBM,Sony,Toshiba yes, but Sony owns the main rights to the technology and selling them to Toshiba it's committing suicide, the whole Sony business will get demolished by Microsoft and Toshiba at that point.
IBM not a rival
Clutch is right: it's odd the article should mention IBM as a rival since it was one of Sony's two partners in development of the Cell -- the other one being Toshiba. I only wonder: if Toshiba's factories didn't already serve as a fab for the Cell, what was the company's role in the first place?
Also, what's happening with Sony's other semiconductor business?
