ReadWriteWeb got their hands on a statement from Sony, and that’s certainly one way to interpret it:
“Pricing is one consideration in the dedicated reading device marketplace, but Sony won’t sacrifice the quality and design we’re bringing book lovers to lay claim to the cheapest eReader,” said Phil Lubell, VP of Digital Reading at Sony Electronics. “Our global customers expect to get the best digital book reading experience and we’re concentrated on delivering that by investing in Sony’s award-winning design and original digital reading enhancements, such as eBook library borrowing and the only full touch screen on the market.”
They won’t leave the market entirely, but I could see Sony giving up in the US. Then again, once they abandon the US market, what will they have left?
P.S. I’m waiting to hear from my contact at Sony. If I find more info I will post again.

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“Then again, once the (sic) abandon the US market, what will they have left?”
The rest of the world? Christ, America isn’t the only market in the world for eReaders.
Scott.
The US is reported to be 60% of the global e-reader market. That leaves 40% for the rest of the world, and most of the current markets are already dominated by someone who has a home court advantage.
So long Sony, so long epub, and thanks for all the fish
New Sony Readers coming soon? | The Digital Reader // Aug 12, 2010 at 9:33 pm
[...] P.S. Now I understand what the Sony rep meant when he said that Sony would compete on quality, not price. [...]