When Stinger took over Sony they were in bad shape. Sony had lost Billions developing the PS3 and paying off billions to studios in order to win the "High Def wars". The Computer Entertainment Division is starting to come around but for the past five years, thanks to the PS3 and Blu-ray, it has been dragging Sony down. Here is a good article about String and Sony along with an selection about the reader.
http://money.cnn.com/2009/06/24/tech...ion=2009062610
"The Sony Reader is the most jarring recent example of the way Sony's internal structures and culture have led to missed opportunities. The device had first been developed in isolation by a group of engineers in the home-audio division; that group's urgent focus was to try to revitalize the Walkman brand in the face of the iPod onslaught. Stringer, who collects rare books, was a strong proponent of the Reader, but earlier versions of the product fizzled in the Japanese market. Limited enthusiasm in Japan curtailed the project, even though more than three-quarters of Sony's sales are outside the country. Stringer blames himself for not pushing harder for the Reader -- which also lacked Kindle's deep publisher relationships -- and vows to catch up with a new wireless model. "It rankled me," he says of the episode, "because it made me aware of the limitations of my power." "
Sony has since rolled the Reader into the CES division and is putting more of an effort into the reader. Going epub was the first step. Going wireless and touchscreen was the second. While also trying different sizes for different people. Stringer loves books and loves the reader, so it is interesting to see the route Sony is taking. If they can match the convenience of Amazon and put some money behind advertising. Then I think Sony has a chance at recapturing lost market share.