Sony confirmed before the release of PS3 that PS3 contains the PS2’s Emotion Engine (EE) chip and the PS2’s Graphics Synthesizer (GS) for better backward compatibility. They planned to remove the EE+GS chip later on after they achieve backward compatibility with software emulation.

Removing (EE) chip and the PS2’s Graphics Synthesizer (GS) will reduce the cost of producing a PS3.

Now Sony CFO Takao Yuhara reported that they have started producing new 65nm cell version for PS3, the new Cell is cheaper to produce than the 90nm. They are also removing some other parts like tertiary silicon from the system.

The new developments will drastically reduce the price of PS3 console, users are happy as long as the backward compatibility remain intact.

[via PS3 Blog]

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