Sony dumps cell development

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A very strange story has appeared this morning about Sony pulling out of a development deal with IBM and Toshiba.

We heard a few days ago that Sony had sold the rights to manufacture the Cell chip to Toshiba, however now it appears that Sony are completely wiping their hands of it.

Sony had signed a contract to continue researching and developing the Cell chip until 2010 but it has decided to withdraw this support along with its capital investments on the 45nm Cell chip production facility.

While I am not sure why they are doing this here are my two theories.

1. They have realised the Cell processor is not the miracle processor that IBM implied it was and have now decided to pursue different options.

2. They are running out of money and are being forced to cut back on research and development

Sony Corp to exit chip development deal with IBM, Toshiba – report

Last Updated: November 8, 2007

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