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@xman

Those features are nice, but 2 weeks ago this TV ( http://www.bestbuy.ca/catalog/proddetail.asp?logon=&langid=EN&sku_id=0926HDS0010100739&catid=23249 ) was on sale for $800. Certainly, the Sony TV is a much better TV but is the improvement justified by a $1300 or 160% higher price?

This is (essentially) what the article is arguing, most people don't care about the fancy features Sony is producing and charging a priemium for and (therefore) Sony is not the dominant company they once were. Much like the $600 PS3 was a (technically) nicer console than the $250 Wii, if the added features are not worth the added cost to the consumer your product will never be able to sell well (or be as dominant) as the less expensive system.