According to market sources, Sony plans to release a version of its PSP (PlayStation Portable) using NAND flash from Samsung Electronics in the second half of this year.
The PSP will feature 8GB of NAND flash, the sources stated.
Although recent reports stated that Sony would opt not to use NAND flash in the next version of its PSP, and would instead use a microdrive, the sources indicated that Sony was stalling to negotiate better pricing from Samsung.
When rumors circulated on February 16 that negotiations had broken down between Sony and Samsung, spot prices for 1Gbit and 2Gbit NAND flash dropped 5.3% and 3% in one day, according to the Chinese-language Economic Daily News (EDN).
Deutsche Bank was also cited by the report as commenting that the failure of Samsung and Sony to reach a supply agreement will suppress NAND flash prices further and push oversupply to 10% this year.
According to data from DRAMeXchange, 8Gbit spot prices have fallen from US$39 to US$34 since Chinese New Year, while prices for 4Gbit parts have fallen from US$23.36 to US$16.60
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