They have managed to create business where there was none. There was no personal computer until Apple. There was no digital video business until Apple. Today, the digital living room is a zero-billion-dollar-business. And it will probably stay that way until Apple gets into it.
In the consumer electronics world, there's always talk now about Apple, the way people used to talk about Sony. At the water cooler or in boardrooms, they're asking, 'What is Apple doing next?' or 'How do we stay out of their way?
Sony has never been good in its thinking about how quality can be diluted. That was their problem with Beta over VHS. VHS wasn't as high-quality as Beta, and they just presumed consumers would go with the best quality. It's the same thing with flat-panel displays.
The big debate at E3 will be over whether graphics and sound are king [as in console games] or whether we want to be able to play others at any time [as in Internet-connected games], ... Nobody has the answer yet. If network gaming wins, you can bet game console sales would slow.