It was reported a while ago that the new 40GB PS3 featured a 65nm processor, but Sony has told Heise Online that the 40GB SKU still uses the old 90nm processors. However, the new model does however feature a new design with lower power consumption (120 to 140 watts compared to 200 on older models). Sony is looking to go the 65nm way in the future but for now they are sticking at 90nm across all models.

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We'd been hearing that Sony's new 40GB PS3 featured a revised design with a 65nm Cell processor and improved cooling, but sadly it looks like those reports were in error -- a Sony spokesperson has told Heise Online that the 40GB model continues to use 90mn processors, but does feature an updated design with a lower power consumption of just 120 to 140 watts, compared to 180 to 200 watts for the older models. Sony says its still planning on moving to 65nm processors in the near future, but for now, it looks like the PS3 is 90nm across the board.