PS3 Cell chip apparently being shrunk from 45nm to 22nm

this was expected. As Sony can't just stop producing PS3 as it'll now be the new budget console, the price has to lowered somehow and the best way to achieve this is to manufacture the processor (and so the GPU which i am sure will be shifted to 28nm node or maybe lower) at a smaller node. this will cut the cost in cooling, power adapter size, etc. Maybe the console itself will be slimmed down more saving on build cost further.

I'll be surprised if Sony cuts the price of the PS3 by much. They would cut their production costs by ~20% - 25%(total guess ) while lowering the price by no more than 10%, if they lower it at all.