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Not a big surprise... The PS3 is failing and Sony online services are way behind Xbox Live.
E-books was the only part of Connect which didn't completely failed: that's the only one that they're keeping. I do not have much faith in LRF as a format for DRMed book in the future: content is not Sony's line of work and they're barely supporting their service enough.
If they ever stop using LRF, they could update the firmware and enable the support for another format though, so as a device, I'm not afraid for the PRS-500...
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