It is really hard to break innovative products in the PC business, and Sony has just dropped one of the few that might have made it -- the Vaio Slimtop Pen Tablet -- according to a ZD Net News story here. I only used it briefly at trade shows and a Sony dealer show, and with long term use might have found it a little inflexible. It was also too expensive, so I would never have bought one myself. Still, the basic ideas will live on, and could reach a larger market late this year when Tablet PCs running Windows XP start to appear.
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