Sony might have lost the portable music player and smartphone war, but it's too soon to count them out of the product design space. What they need is a hit or a killer app to put them back in the game, and since they've lost points on hardware, perhaps they'll make it back in software. Take a look at "SmartAR," the augmented reality technology they've been messing around with in their skunkworks:

Needless to say, the ability to photograph barcode-less items in the real world and get instant information on them could be huge, a sort of away-from-a-home-computer Google. What remains to be seen is if Sony can bring it to the masses in a palatable format and, of course, what Google will counteroffer if SmartAR takes off.