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Originally Posted by jersysman
As I new buyer of a Sony eReader (coming over from the Nook), I can't see how Sony could compete in the eReader marketplace at that price point. Sony learned a hard lesson back in 70s and 80s when it had the superior product in the Betamax, but were forced out of the market by the lower priced and mass-produced VHS machines. I think they saw the same handwriting on the wall and is trying to stay in the eReader game. There are not enough consumers out there who will pay a premium for anything, especially in this market where there are numerous entries in the $100 - $150 price range. The average consumer is not willing to pay a premium of over $100 for the same machine that one of your major competitors just released for $99. While I think they could have come out with other iterations of the device (3g model is being released in Japan), I think they are viewing the T1 as their best shot to remain viable in the market.
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I think you will find the reason why Sony lost out in the Betamax/VHS war is that the majority of the major film studios signed up for VHS, which left Sony without any significant source of material.
But I'm glad that when it came to the BluRay/HD DVD war Sony stuck to its guns and this time won through. Admittedly it helped to have the backing of other players in the market.