Well you know they had to do some things to make the
PlayStation 3 fit into a smaller space. One of the things is
updating the Cell processor. It's now buit on the 45-nanometer process rather than the 65-nanometer process of the original. Smaller chip equals less power and cheaper to produce. The article states it's speedier but there's not numbers to back that up. Whether it is remains to be seen. So, smaller chips which are cheaper to produce help contribute to the smaller and cheaper console.