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Its just being outcompeted by specialist devices/other companies doing it better.

1. Gaming it gets crushed by the DS.
2. Music it gets crushed by iPhone, iTouch, iPod + other similar.
3. Movies is sort of half dead/half alive but I doubt it'll survive the launch of the iPad/Courier + others.

I don't really think piracy comes into it, the DS is infact even easier to pirate and the PC is easier again to pirate and yet games still sell.



Tease.