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Sony's name still sell gadgets. Especially now that mp3 player are entering mainstream, most non-techie buyer will get either an Apple (due to the hype) or a Sony over the rest. But since Sony now doesn't support the mainstream format (mp3) that sales is siphoned off to others. If they don't act now, and the rest get a foothold, people would no longer associated an mp3 player with a Sony. So better late than too late.
In fact if the player pictured above were to support mp3s and it were 40GB, I would get that one over an iPod that I currently uses. That Sony device kick ass with small size and looong battery life...too bad it only support ATRAC at the moment...
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