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The E-reader competition is harsh. Probably even more harsh then in the Tablet or phone market. Sony previously had given customers a huge selection of E-readers to choose from and now they have narrowed that selection to only one model with multiple colors. It was obviously more economical for them to take this avenue but it has hurt their sales revenue. They have also gone to a radically different architecture since their latest readers T1, and T2 are based on android with Sony's proprietary user interface. In addition Sony readers had sold for a premium, but Amazon has shown that there was no reason for customers to pay a premium price for comparable satisfaction. Sony appears to be conceding the market to its competitors because the profits are much less and not worth fighting for.
We must remember that when Sony first introduced their E-reader there were only one or two other players in the space, and now there are many players to fight for our hard earned dollars. At least Sony did not fiddle with the epub open standard which is surprising given their knack for proprietary efforts in their other technology manufacturing processes
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