hugo said:
That's partly because MS entrusted their design partners to do almost everything for them last gen.They still lack their own fabbing plants today.
No doubt that the PS3 and Xbox360 games will not look far part from each other but I believe that the PS3 will have the slight advantage.Their early real time rendered demos are already showing better HDR lighting effects with more vivid colours that I believe is atributed to Nvidia's better pixel shading technologies.
Not really . actually in some cases it would be cheaper to outsource than to make your own fabs .
1) you have to pay the r&d on the fabs
2) u have to build the fabs (costs hundreds of millions)
3) you have to operate the fab (people , power , heating and what not costs
4) you have to upgrade the fabs
Where as with ms they
1) pay a small premium on the chips made( its already been said that umd and tmsc make razor thin margins on chips )
2) can move from fab to fab when better tech or yields meet thier goals . I.e if tmsc has 65nm ready next december but umd wont have it ready till march they can move to the tmsc line and produce 65nm chips in december. If sony doesn't have 65nm they have to wait till they have it
3) i believe fabs only charge per working chip not wafer which means it can cost them less per chip (of the same complexity or tranistor count ) than sony ( i can be wrong on this one
4) if they need more fab space they simple go to another fab and order chips from them too .
Lets also not forget that assuming a spring launch ms can have as many as 8 months of mass production on the xbox 360 units which will of course increase yields and drive down cost of the units before sony starts producing ps3s .