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Let us break this down into rational bites. What he is saying is the technology is too problematic in implementation and cost effectiveness. This does indeed hurt the format. When a party that should be supporting the format is effectively cock blocking the format. The format needs to be an integrated component within existing products due to its substantial price tag, and a stalling global economy.

This is all about obtaining ubiquity within the market place. Where the technology becomes a standard not a niche. This format isn't going to make it in the current market through stand alone products. Not when digital downloads are cheap, the format it is trying to replace is substantially more cost effective, and the associated products that use the functionality are leaving the price range of many consumers.

The bottom line is simple the format needs every inroad that it can get into the hands of consumers. That speeds up adoption, and thus allows for the prices to drop in a market that at the very least in the short term will be far more frugal. Do not be fooled into thinking this format has all of the time in the world. Sales must continue to grow, and the format must find widespread adoption within the next couple years. Unless that happens the format will be overcome by advancing technology.

Yes this is a major problem. The fewer players pushing the technology within their devices the less likely it is to ever see success. Since this is in the Sony forum I would also say it does hurt the perception of the PS3 console. You want consumers seeing the value of the drive, and not viewing it as a niche technology that kills off one of the major selling points.