Sony has admitted that putting DRM into its music players was a mistake that cost it the personal stereo market:
Ken Kutaragi, president of Sony Computer Entertainment Inc., said he and other Sony employees have been frustrated for years with management’s reluctance to introduce products like Apple Computer Inc.’s iPod, mainly because the Tokyo company had music and movie units that were worried about content rights…
High-ranking Sony officials have rarely publicly said their proprietary views were a mistake. Kutaragi, who has long been viewed as a candidate to lead Sony, was unusually direct in acknowledging Sony had made an error and blaming proprietary concerns from its entertainment division.
Link via boingboing