A 45 nanometer cell processor was first realized this year, and Sony plans to include it in the Playstation 3 sometime during 2009.
So how does this affect you? By creating a smaller chip, Sony circumvents some cost associated with creating the Cell, and a cheaper production price equates to more leeway for a potential PS3 price cut. Additionally, by reducing the size of the chip from 65nm to 45nm, power consumption decreases by approximately 40%. When less power is consumed, less heat is generated, and a slimmer console -- like the slimline PS2 -- suddenly becomes a possibility.