[MerLock]

Hard to say. I don't know many people who own Sony computers and it seems like the market is dominated by HP, Dell , Acer.. etc. in the USA at least, but Sony is still in the computer business.

Apple has proven that something that looks slick and has decent function will sell even if it's a bit expensive. There are other mp3 players out there that don't even have a music store or an app store. So I don't think you need to tie in your device with a media store to stay in business.

I think Sony can stay competitive if they release well built, stylish and versatile readers and not go too far off into the deep end with pricing. The cost of making these readers might also be coming down in price as they are mass produce and the technology is getting older.

One can even look at the cell phone market. There are people willing to dish out money for a certain cell/smart phone model even though they can get a free one with a contract.