DataPlay tried to replace CDs in 2001 with an optical disk the size of a half-dollar:
DataPlay won all the big tech awards. Most major labels and MP3 player manufacturers signed on. Then, Apple introduced the iPod. The market dried up for removable media players, including portable CD players. The DataPlay company scaled back its new media to shift focus to DVDs, although they seem to still sell DataPlay media and drives by e-mail.
SlotMusic does have some notable advantages over DataPlay. Solid-state SlotMusic is much more speedy, rugged, and power-efficient than optical disks like DataPlay. At 1GB, SlotMusic cards can hold more CD-quality music than real 600-720MB CDs, but the 500MB DataPlay discs occasionally required some compression. Who cares? Physical media is on the way out; DataPlay understood that and cut its losses.
The only way SlotMusic makes sense is as a strategy to undercut the used CD market. The RIAA gets no income from sales of used CDs. Of course, every penny the RIAA doesn't collect is an act of piracy. With a reusable MicroSD card, you can rip your new tracks to your computer for syncing elsewhere, then erase and reuse the card as digital film, reducing the incentive to resell. "Reuse" is one of the three holy Rs of the green movement, so CDs will become the new styro.
Or, maybe RIAA execs just don't remember DataPlay like they don't remember the 70s. Yeah, that's probably more likely.