I also just had the, "No, I prefer this over the Kindle" discussion with someone this week. I agree that now that the Sony readers are available at a larger variety of stores, this will help.
But the 505 has been at Target stores for quite a while, and no one seems to know about it. When I had my 505, I would get asked about it. I would mention it was available at Target. People would then ask if it was new. But it had been available for over a year.
I think if Sony wants a larger market share, then they do need to advertise more. Better product placement in the stores, better signage in the stores, and one or two well placed TV ads would probably broaden their base. I would love to see them overtake the Kindle.
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