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All this makes for a daring strategy, but not one that plays to Sony's strengths. Sony has always been at its best as a personal hardware company, coming up with nifty gadgets that delight consumers. In recent decades, though, it's become oddly fixated on imposing its own standards – Betamax for VCRs, the Mini-Disc for digital music players, the Universal Media Disc for PlayStation Portable, the Memory Stick for anything you can think of – despite the world's unwavering rejection of those standards. And Sony has never displayed an aptitude for software or had great success with networking, the key feature Microsoft has built into the Xbox. Yet Sony has to face Microsoft not just in videogames but across the entire panoply of home electronics, which Microsoft is determined to control through software. And Sony has to do this with cash reserves of $6 billion – compared to Microsoft's $38 billion hoard – while losing hundreds of dollars in manufacturing costs alone for eve

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