It looks like the PlayStation 3's Cell processor will be getting a die shrink in the middle of 2009. For Sony, this means that it will be able to make more Cell processors for a lower amount of money. For consumers, this means that future PlayStation 3 consoles will use less power and generate less heat. This lowers the chance of heat-related failures and gives Sony the opportunity to alter the PS3's form factor (though it might be too early for a significant change).
One important issue to keep in mind is the pending PS3 price cut. Achieving to 45 nanometers (Yankee spelling) sooner makes the price cut more palatable for Sony. It can use the reduced price to get rid of many 65-nanometer systems while churning out even more 45-nanometer ones.
Do you think Sony will change the form factor of the PS3 in a significant way when the 45-nanometer chips arrive? Or will it be the same black box with a cooler and more efficient chip?