Sony to slash chip spending for next 3 yrs

Tokyo, Feb 13: Sony Corp. will cut its chip spending to about 300 billion yen (Tokyo, Feb 13: Sony Corp. will cut its chip spending to about 300 billion yen ($2.5 billion) for a three-year period starting on April 1, down from 500 billion yen for the past three years, the Nikkei business daily said on Tuesday.

The newspaper also said in its online edition that Sony does not plan major capital spending to make an advanced version of its Cell microchips, and will instead consider outsourcing production.

Sony's Cell, dubbed ''a supercomputer on a chip'', drives its PlayStation 3 (PS3) game console.

But PS3 sales are flagging, with rival Nintendo Co. Ltd.'s Wii game console outselling the PS3 nearly three to one in January, according to video game magazine publisher Enterbrain, which blamed PS3's higher price tag and a shortage of game titles.

Reuters.5 billion) for a three-year period starting on April 1, down from 500 billion yen for the past three years, the Nikkei business daily said on Tuesday.

The newspaper also said in its online edition that Sony does not plan major capital spending to make an advanced version of its Cell microchips, and will instead consider outsourcing production.

Sony's Cell, dubbed ''a supercomputer on a chip'', drives its PlayStation 3 (PS3) game console.

But PS3 sales are flagging, with rival Nintendo Co. Ltd.'s Wii game console outselling the PS3 nearly three to one in January, according to video game magazine publisher Enterbrain, which blamed PS3's higher price tag and a shortage of game titles.

Reuters