Sony's Dilemma

http://www.wired.com/wired/archive/11.02/sony.html

This puts Sony in a bind. Except for the Xbox, Microsoft doesn't really sell hardware. All it has to do is keep entertainment executives happy and watch them adopt its DRM platform. If Sony fails to offer every bondage option the entertainment folks can imagine for their customers, it opens the door for Microsoft to take control of its hardware. But if Sony's devices don't break out of the DRM straitjacket, it could be overtaken by manufacturers with less to lose - like Apple. To save its electronics business and make its dream of digital services a reality, Sony needs a system that doesn't punish consumers yet somehow satisfies the entertainment industry. It needs to square the circle on digital rights.