According to Digital Music News it would seem that Sony is going to pull the plug on its online music store (Connect), and on recording facilities in LA and New York.  This hasn’t been the first concession to loss of influence in the music space with the decision to no longer develop its ATRAC compression format.

I think a time has come where Sony can no longer see itself as dominating & influential player in this market space, until it can come up with something revolutionary (like the original Walkman, not just evolutionary) in a manner that doesn’t look you into Sony.

http://www.digitalmusicnews.com/stories/061707connect