ATRAC3 will no longer be a requirement for upcoming portables

One of the most absurd but true stories that I've read in the past few years was the media branch of Sony suing the hardware branch of Sony.  They had a high up Sony exec talk about how their hardware guys were at odds with the software people because Sony has a vested interest in both but were hamstrung by the need to protect their IP hence ATRAC3 instead of MP3 support on their media players.  To be blunt, ATRAC3 was ass - no one in their right mind would rip their entire music collection to ATRAC3 when so many other formats were available that are not as restrictive.  Sony's OpenMG software was a mess also utilizing a ridiculous limited Check-In, Check-Out system for songs.  Well it looks like those days may be finally behind them as Sony announced MP3 support in upcoming hardware.

Sony says its digital music players will now play MP3 format music tracks, and not just its own Atrac format.

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A Sony spokesperson said new devices which will play both Atrac and MP3s would be launched later in the year.

It also plans to offer software to upgrade existing digital music players so they too can play MP3s.

We mentioned yesterday that the portable MP3 player market was going to hit $58 Billion in 2008 and that Apple is going to face some stiff competition. Now that Sony has got their done an about face, arguably the strongest brand name in consumer electronics is going to have a good run at them, probably a lot sooner than most people expect.