Ah, something tells me it wasn't the technical capabilities that held this very pronounceable and fashionable product back.
Sony's response to this was to use their bubble-era money to start buying US record labels, purely so they could force them to support their formats. But they ultimately wound up buying the exact same mentality that they were fighting against, and the labels won that fight internally. Sure, Sony had Minidisc releases of major label music, but the format flopped anyway, because they were entirely unwilling to market it for recording in the US. Outside of the US, Minidisc was the Apple "Rip. Mix. Burn" experience half a decade prior to the iPod; but in the US that experience basically didn't exist unless you knew exactly where to look.