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If Sony want's to compete on quality it has to be quality overall, not just the perceived quality of the physical device. They need to get their software into shape on both the desktop and reader side of things. They need to make their readers Mercedes and Porsches compared to B&N and Amazon's Fords and Chevys. Right now the only thing they have is the perception that they're higher quality because of the metal casing while everyone else is plastic. There's certainly room for a higher tiered group of readers and Sony can fill that.
On the bookstore side of things I think they should open it up so you don't have to use their software to buy books. I know plenty of people who avoid buying there simply because they don't want anything to do with Sony's software.
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