"Sony this week said it will stop developing and selling new handheld digital assistants in the United States this year, leaving a declining market and striking a blow to PalmSource, whose software powers the devices," reports Reuters.

"The move will likely shrink the number of new handhelds that need the Palm operating system made by PalmSource, which counts Sony as its second biggest licensee after palmOne."

Comment: Just to be clear, Sony told the FT that: "Sony is taking this time to examine the conventional PDA business and how it will transition into the future. Product development and sales continue for the Japanese market only." The story is currently available at The New York Times site.