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IBM's Cell Processor Unveiled: A Breakthrough for the Video Game Market

Strategic Insights

— 1 min read

IBM's Cell processor, a closely guarded secret for five years, has finally been unveiled, and it is expected to have a significant impact on the video game market. The chip is designed to process the next generation of broadband media and graphics with greater efficiency than traditional approaches. As a major part of Sony's Next Generation Game Console, the Cell processor may also have other applications, but it is unlikely to dramatically encroach on Intel's territory.

Key Takeaways:

  • The Cell processor is a new architecture designed to process the next generation of broadband media and graphics with greater efficiency than traditional approaches.
  • The chip will be a major part of Sony's Next Generation Game Console, and may have other applications, including use in the media center PC market.
  • According to a report by In-Stat, the total combined revenue forecast for the PlayStation 3, Xbox 2, and Revolution consoles will rise from $1.1 billion in 2005 to $9.4 billion in 2008.
  • The only announced product from the Cell family is the version to be placed in Sony's PlayStation 3.
  • In-Stat expects Sony to remain the market leader in the next generation of consoles with the release of the PlayStation 3, but both Microsoft and Nintendo will close the gap with the release of their own next-generation consoles.
  • The Cell processor is unlikely to compete with Intel's products outside of the console market.
  • In-Stat's report, "Cell Processors: Separating Reality from Hype" (#IN0502564ESCA), is the first report published from the company's new Emerging Semiconductor Chips & Applications service.

Statistics:

  • Total combined revenue forecast for the PlayStation 3, Xbox 2, and Revolution consoles: $1.1 billion (2005) to $9.4 billion (2008), a growth of 850%.
  • Number of years the Cell processor's existence was kept secret: 5 years.
  • Number of actual chips in the Cell family that are unannounced: Most of them, with only the version for the PlayStation 3 announced so far.
  • Market share of Sony in the next-generation console market: Expected to remain the market leader.
  • Release year of Sony's PlayStation 3: Not specified in the report.
  • Price of In-Stat's report "Cell Processors: Separating Reality from Hype": $2,495.

Sources:

  • In-Stat (http://www.in-stat.com)
  • In-Stat Report: "Cell Processors: Separating Reality from Hype" (#IN0502564ESCA)

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