Sony has announced it will sell its production facilities for making microprocessors and graphic chips used in its PlayStation 3 game console to Toshiba Corp, in its latest step to focus on core operations, Reuters reports.

Sony will sell its microprocessor output facility in Nagasaki prefecture and "RSX" graphic chip production line in Oita prefecture, both in western Japan, by March 2008 and they will be run as joint ventures.

Sony also said it would work with Intel in developing the next gen chip and that the videogames business was to remain one of Sony's core businesses.