Sony is selling its CELL chip technology (used in the PS3) to Toshiba who will continue to make it for Sony. The sale follows several meetings between the two companies that will help Sony focus more on their core business model which is consumer electronics.
This would not be the first partnership between the two electronics giants.
Still, I have two words...format war. If Sony is willing to play nice with Toshiba over the PS3 and other chipsets why on earth can't they do the same with Blu-ray and HD DVD? Seriously, if Sony is going to Toshiba to help offset costs and development on their chipsets why not offset the costs of a costly format war by making ONE player. Or at least one hell of a UNIVERSAL player.
It's not like Sony can't play nice with others, hell most of their flat pannel technology and profits stem from a joint venture with Samsung.
Let's do this already.