I think the fact that Sony was so stubborn on their Atrac line is what cost them the MP3 market. They had dominated with the walkman and the discman and now, because they went against the trend and tried to do Atrac only, they're left behind not only to the Ipod, but also the Zune, Creative Labs and even Samsung and Philips. They can still market the Walkman as it's a powerful name, but they must have the products to compete in both the low end and high end market, right now the walkman MP3 products are very poor.
Likewise Sony Ericsson's products are very poor, they need to come out with new and better products to compete in both the high end and low end market. It's interesting that Sony is considering buying out Ericsson's share in the venture (at least that's what I got from the interview).







