A Reuters report suggests that Sony may be shifting production of its Cell processor to outsourcing vendors in the future to reduce costs. The news agency spoke with Yutaka Nakagawa at Sony about the chip division at the company, and Sony is looking to significantly reduce its expenditures in that area. Sony predicts that they will be able to reach 45 nm circuitry for the Cell by 2009, but whether the production will be handled internally by Sony or by an outsourcing vendor is yet to be decided. Currently Sony handles the production of the Cell chip, a byproduct of the Playstation 2 days when the company found no other manufacturers with the technology to produce the hardware for that console. Now, Sony says that chip manufacturers have advanced to the point where it may not make financial sense for Sony to be the sole chip provider; ongoing price reductions in the manufacturing process of the Playstation 3 will be instrumental in helping Sony keep pace with Microsoft and Nintendo as they streamline production of their competing consoles.