IBM has begun manufacturing the next iteration of the Cell processor. This is the first variant of the Cell to use the 65nm process, which will provide a reduction in power consumption and materials required, definitely something Sony wants badly for use in future PlayStation 3 consoles. Sony will be using a 65nm version of the Cell (though perhaps not specifically this variant) in the future to exactly this end, but likely IBM has many plans for it, such as in additional Blade servers.

Last year, we saw IBM introduce servers using the Cell, which was a bit of a shock to some who didn't expect it to float beyond the realm of entertainment.