It seems like Sony tries to build their success on the innovations of others, so creating a new paradigm isn't their forte but building a better mousetrap is. I think it's apparent because instead of trying to figure out what people really want, they'll just bombard the market and hope something sticks.
I think that Apple has created a brand in the iPod that people respect and admire, and that all of these other digital music players are playing catch-up in feature-set and name recognition. Sony has made a major concession in moving away from their proprietary ATRAC music format and that may help them in moving their products, but even if they chew into the iPod's dominance, I don't think it'll be by much because Apple will just incorporate any new features that pull love away from the iPod.
Sony, the marketing company that happens to make electronics.
POL9A
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