Hardware has never been an issue with Sony...its going to be the software and self-imposed restrictions that is going to bog them down as history has shown again and again. Ask people on the street and people will know what iPods or Mp3's are while most will have no idea what MD or ATRAC is.
When it comes to long play hours and multiple G's, organization and interface is essential. Apple already has that down pat...Sony's...well at least they can auto-mark tracks, dub at higher speed with additional cost in hardware, and maybe transfer CD-text to which to this day I don't think I've seen a CD with it enabled... hmm, a bit behind the times don't you think. And even though Sony does computers too...its actual operating software is going to be a joke compared to what Apple can and has done. Apple is going to be able to produce much better software for Mac's, thats a given, but they IMO are able to create much better software for the PC as well, humorous being that Sony is also a PC vendor. iTunes is pretty damn good regardless of what platform is running it...while Sony's ATRAC software...uhhh what is it called again? Exactly, its forgettable.
The iPod can playback both Mp3 as well as the proprietary AAC it uses, as well as a few others. If the Sony can only do ATRAC it is doomed. If all it can do is convert to ATRAC from Mp3 it is still crap. We all know it is possible for an MD player to also be a TRUE mp3 player if they did not have self-imposed restrictions. Sony is also Sony Music, and thus they always try to tie down the software to the hardware. An MD disc is just storage just like a harddrive or CD-rom...it is Sony that keeps it tied down to ATRAC for mostly copy protection reasons(which is again pointless since that means copying will just be done through other means and actually strengthening competing standards). This gives other competitors a big advantage since they treat hardware and software as they should.
I am hoping that Sony is actually seeing in what ways they need to *fully* compete with Apple...but more than likely I have a feeling the 1 GB MD disks are definitely going to be tied down some way or another.
Apple works in perfect harmony with its product line and divisions. Sony is fighting with itself over electronics, music, and computers.
Sony is great in hardware though...and actually this debut is not really proof of it, since this 1G MD R&D and technology existed in Sony's hand many years ago. My bet is they still won't play their cards right.