Sony plans to upgrade the PS5 chip technology from the current 7-nm process to a 6-nm process. The new technology will increase the density of transistors by about 18 percent and reduce the cost of manufacturing the chips, which will boost the PS5's profitability.
Sony has been selling AMD's 7nm APU chips on PS5 devices worldwide at a loss, and the device has sold 7.8 million units globally, which means that Sony's losses are growing.
So even if the PS5's new technology cuts costs by a few dollars, it could save Sony a lot of money, or even turn a profit. Those who want to buy shouldn't be too concerned, because the 6nm process doesn't offer any better performance than the 7nm process, and Sony is switching the chip entirely for cost reasons.