Word out on the street is that to cut PS3 costs earlier than expected there will be upgaring the Cell architecture. At the moment, Sony sells the PS3 at a loss. The respected group of analysts is now earmarking August as the milestone month. Sony's CFO recently suggested that the move would occur in the second half of year -- a date analysts then pegged at November.
No precise info is shared yet the new expectations were provided by Nikko CG. However, it's safe to assume that the PS3's break-even event will be realized by a switch to a sub-65nm cell processor, sub-90nm RSX graphics chip, or both, since the smaller chips are less-costly to manufacturer.