This, Apparently, Will Save Power & Money. Yup.

It also uses 15 percent less power.

The 45nm version of the RSX chip replaces the older 65nm chip. Mmm chips. Instead of using four 64mb XDR RAM chips it uses two 128mb ones. Yup, we're lost too but Engadget makes out that all this is a good thing. Uh-huh.

Of course, the cheaper chip moves Sony one step closer to hardware profitability - or at least gives them leverage to drop the price once again when Microsoft does the inevitable.

Update @ 20:33 - Engadget's confirmed that the chip is in fact built using 40nm processes, rather than the original reported 45nm.