Sony does have a reputation of producing above average products of top quality but at a well above average price. I think many will continue to purchase Sony readers as long as they are available. I too remember the Clie line of PalmOS PDAs that entered the market when Palm had allowed the PalmOS PDA market to stagnate. Sony breathed a short-lived, new life back into the market with their well built and innovative line. But it was short-lived as Sony chose to bow out suddenly, leaving a LOT of unhappy Clie owners. I really don't see the Kindle, Nook, Kobo, etc. as the deciding factor that will kill the Sony reader. I think if that happens it will be a Sony decision based on whatever strange business philosophy they follow.

And we shouldn't forget the massive earthquake and tsunami of March, Sony might have been hit hard by this event. A lot of Japanese companies are scaling back sales in the USA due to that catastrophic event and its impact on their production capability.