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Mobipocket is a nonstarter, they are owned by Amazon and Amazon won't dilute their market.
I am looking for a way to significantly increase their number of books. Unless they can get anywhere close to amazon's selection and pricing it won't matter how nice their hardware is. Even if they covered every other format (epub, lit, pdf, and ereader) they will not come close to Kindle's catalog.
Having said that, I am going to say that Sony is going to try and out-sexy Kindle. I think their killer shot would be a color eink reader, but I think it would be impossible to keep such a device under wraps in today's environment. The fact we haven't seen such a device on the web is telling. We could have the off chance that the recently shown color system from Fujitsu may suddenly be under the Sony name.
No matter the amount of new hardware, it has to fix the deficient catalog first.
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