Did UMD fail in terms of what Sony intended it to be ? most defintley , it wasn't the portable multimedia format Sony wanted it to be , the UMD drive doesn't and has never existed in any other electronic device apart from the PSP.
Did UMD fail as a gaming format ? Hell No , that would be like saying the Catridge in the SNES , N64 and the disc in the GC failed , all the format does is serve as a medium for the gaming experience so if games sell on the platform then the format coincidentaly does well .
Sony isn't as reliant on the UMD's success as a viable multi-media platform as it is on the Blu-Ray . R&D , Marketing & Promotion and other expenses for the UMD are likely not nearly as large as Blu-Ray's. But on the other hand Sony stand to gain alot more from the Blu-Ray format than they do the UMD , infact if certain factors go in Sony's favour they could make more the format than they did on PS2 even.
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