Interesting News [ Delussions of Grandeur Cell ]

[Panajev2001a]

[...]

Meanwhile, the fiscal 2002 annual report released by IBM Corp. in March contained quite a surprise. Ken Kutaragi, Sony executive deputy president, appeared in the report along with senior managers at the U.S. computer giant. It was the first time for IBM to give someone from outside the company such treatment. Kutaragi received the honor for his contribution to the joint development of a high-performance broadband chip code-named Cell.

Sony plans to produce the new chip in-house. Cell is not just a next-generation central processing unit -- Sony aims at controlling broadband networks with the chip.

Cell will be built into every television set, audio system, game console and other consumer electronics carrying the Sony label to create a broadband infrastructure by connecting all the chips via high-speed circuits. Cell will also function as a server, enabling high-quality video images to be viewed over the Internet. With the establishment of broadband infrastructure, films, music and other Sony-owned content are expected to start generating more cash flow.

IBM has a similar strategy, called grid computing, under which personal computers are linked via high-speed circuits to realize ultrahigh-speed processing by using ordinarily idle time at PCs on the network. The computer maker's key strategy also hinges on developing a high-performance chip.

"Sony and IBM have the same dream," said Idei.

Volume production of Cell will start around 2005. Harking back to the company's beginnings, Idei hopes the new chip will become the "transistor of the digital era." Until then, Idei will have to convince the stock market of the inherent value of his company by generating more cash flow through drastic business and organizational reforms.

 

[Vince]

Cell will be built into every television set, audio system, game console and other consumer electronics carrying the Sony label [/u]to create a broadband infrastructure by connecting all the chips via high-speed circuits.

I once knew some guys from a forum who said this very thing.

 

[Panajev2001a]

I know them too... I think...

It must be those darn Italians again

 

[Josiah]

Why would they put something so powerful in a TV? Is it possible that Cell will be an entire family of processors, some less powerful?

 

[Panajev2001a]

Bingo

Cell == scalable + modular

 

[jvd]

Hmmm yea... no big news here. We all know how scalable cell is. Scalabilty isn't just going fowards its going backwards too .


I'm sure they will have a crap load of chips that don't meet the speeds needed for the ps3. But it will be mroe than fast enough to do mpeg2 decoding for a dvd player. Or dispaly a tv image.

Its smart busniess.

 

[Vince]

Its smart busniess.

Exactly, thats why I laugh everytime someone on here talks about Cell failing. It can't fail, it's infallible. Even if they're way off on preformance, it's a year late, it's underspecced - they're still going to win because their profit margins will rise. What do you think is going to happen when Sony Group utilizes it's own scalable IC for 100% of it's devices instead of giving that money to other corperations.

 

[Paul]

Just wait until it gets shoved into millions of PS3's. That Kutagari is a smart one.

 

[ChryZ]

Panajev2001a, what was the source of the opening quote?
URL would be nice, if possible. TIA ...

 

[MfA]

It is clearly mostly analyst speak, I should add clueless ... but really, that is kinda redundant.

 

[Panajev2001a]

Its smart busniess.

Exactly, thats why I laugh everytime someone on here talks about Cell failing. It can't fail, it's infallible. Even if they're way off on preformance, it's a year late, it's underspecced - they're still going to win because their profit margins will rise. What do you think is going to happen when Sony Group utilizes it's own scalable IC for 100% of it's devices instead of giving that money to other corperations.

True... that would be saving them quite a bit of money.

 

[MfA]

Vertical integration can backfire, with the margins come the risks.

 

[Panajev2001a]

Yes, if they let the efficiency and aggressiviness of their R&D labs go down because of that...

I think they have shown to be able to choose smart business/technological partners to try to always be ahead of the technology curve ( their R&D labs have always been one of their most precious gms IMHO )... and they will keep doing that as that is their way of being ( it is the way of Ken Kutaragi, a man very powerful at Sony corp. and whose power is growing ) themselves...

Of course Sony needs to increase their internal margins as the Japanese economy is not doing incredibly well and Sony is in a lot of pressure ( as a lot of companies are... ) to show investors to be a healty company.

PlayStation 3's R&D, consolidating their semiconductors business and investing on it is a great sacrifice and if they can develop something that can help Sony in returns they will do it ( that is when Cell comes into play ).

Sony keeps licensing technologies from 3rd parties and to create new of their own, but Cell should be able to help SCE in their R&D efforts and Sony in their quest for a bit higher profitability.

 

[jvd]

Like every other invention since sliced bread this can bring a huge profit. Do just okay or fail a horrible death.


It can fail if the ps3 fails. Thats what cell was mainly built for. Thats its main purpose. Everything else is really a bonus since they don't depend on cell. They can go on using what they use now if sell is horribly late.


I never said cell was bad. I like the tech. I just don't think the be all end all that others feel it is. Its just tech.

 

[Panajev2001a]

You are right, it is tech... I just happen to see a lot of potential in it...

 

[notAFanB]

Like every other invention since sliced bread this can bring a huge profit. Do just okay or fail a horrible death.


It can fail if the ps3 fails. Thats what cell was mainly built for. Thats its main purpose. Everything else is really a bonus since they don't depend on cell. They can go on using what they use now if sell is horribly late.


I never said cell was bad. I like the tech. I just don't think the be all end all that others feel it is. Its just tech.

how do you come to the conclusion that PS3--> fail ~CELL-->fail?

I can envision the former but not the latter since the 'tech' used in CELL is redirectable.

if you are talking 'penetration' then there might be a case thougth

 

[DeadmeatGA]

...

The problem with Kutaragi Ken's dream is that

1. Not all TV sets and DVD players are made by Sony. Proprietary technologies are never accepted as consumer industry standards.

2. Development headache with CELL.

Some dream will remain a dream.

 

[notAFanB]

2. is a given while it's clear that CELL is 'only' going to be deployed for sony products.

they are not out to conquer the world here you know.

 

[Panajev2001a]

It is true... Toshiba also makes tons of products...

Then you add IBM's own products and cut for Cell a nice niche and more...

Who told you they will never license the Cell technology ?

 

[Vince]

Re: ...

1. Not all TV sets and DVD players are made by Sony. Proprietary technologies are never accepted as consumer industry standards.

I think that's the point buddy. Sony needs differentiation to suceed, the corperation has never been in a point like at the present AFAIK where they're almost becoming this massive, traditional company that competes on price and aims for quantity.

IMHO, Cell will be the first step to reverse this. They need to create demand for their product and I believe (and why I'm such an ardent supporter of this is) that Cell can be the reason to buy Sony. Have a Sony TV with Cell, I'll be tempted to buy Sony Audio components with Cell that are 'brilliant' (as in, beyond 'smart') in their interconnectivity and ability to share digital media. Hey, and then when I buy a Sony PDA (PCP?!?) I can control all of this with it, or download my digital media to it from the Audio System. Throw in a PS3 or a Set-top box with Cell and I can download Sony's Digital Media and using some OpenMG like softeware I can send it to all my other Cell powered subsystems really easily.

See, if I'm correct (and not to be a jerk, but I think I am) Cell could create demand. It will fuel sales with this additive effect and be the incentive to buy Sony in the next decade.