I think they lost it after the big successes, and got this megalomaniac mindset that they could establish market standards at will. Their consumer segment losses due to insistence on things like minidisc or memory sticks must have been tremendous.
I think they had a lot of tunnel vision as well. In their local Japan market, they DID set the standards. You had MiniDisc players integrated in cars, etc. They just didn't have the international perspective required.
