Reports out of Japan indicate that Sony and Toshiba will begin production on the new 45nm Cell processor chip in 2009. This is a delay from the previously announced schedule of Fall 2008. The 45nm Cell chip is designed to replace the 65nm Cell used in the Sony PlayStation 3. Engadget reports that the chip not only costs less to produce but will also require 40% less power to operate. This may allow Sony to drop the price on their PlayStation 3 console.