Sony Isn't Worried about the Video iPod - Maybe They Realize They Can't Compete?

Pro-G is reporting that Sony "isn't worried" by the new iPod Video device. Why they aren't is beyond me. Apple has so much momentum behind them, anything Sony tries to compare to something with the word "iPod" means they're not going to win the marketing battle. But then again, Sony is also selling the PS3 for $1 million or some other crazy moon figure, so who knows what plans they're hiding up their sleeves.