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Not really that surprising. I don't know their financials, but I always wondered about their sales in the mainstream market. Great following among enthusiasts, mostly those that frequent AV related forums, but unfortunately even though they managed to get access to some retail chains, the average buyers still favored the known brands from Sony, Panasonic, Samsung, and others. Although their players provided more, and arguably better, functions (i.e. audio options, etc), these were unrecognized, or not needed in the average system. Their pricing models didn't help.
That said, it's interesting that they indicate they will continue to service all the units still under warranty, and continue to provide firmware updates. If that remains true going forward, they must be moving into some new venture that will allow them to remain "open" for business. I guess we'll see.