Both Sony and Microsoft take a hit from each sold video game console of the new generation. PlayStation 3 and Xbox 360 simply cost more to make than what the consumers pay and even if this is in no way a new way to do business it’s not a working model in the long run. Right now both Sony and Microsoft are working hard on transitioning to a 65nm manufacturing process for its main components hoping to lower manufacturing costs. Microsoft has plans to ship its first consoles with 65nm processors during the first quarter of 2007. Nothing new, but a lower power consumption, which is all good.