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I was wondering this too - google found this

> a "hotline" button which activated a small built-in microphone, partially overriding the sound from the cassette, and allowing one user to talk to the other over the music.

and as the other poster remarks

> When the follow-up model, "Walkman II" came out, the "hotline" button was phased out.

Was there ever an actual use case for this, or is it pure gimmick?

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Pure gimmick. My Bose QC-20s have this feature and every time I've tried to use it, it's been useless.

The Sony WH-1000XM series (possibly the next segment down as well?) still has this feature and I've found it good enough to be useful.

On planes it's simpler than pausing/removing the headphones to order a drink and the same in the office when you just need a quick yes/no from someone next to you.

There's also a passive mode I use when I'm actually outside with the headphones on. You don't hear engine noise or planes overhead but you can still hear tire noise of nearby cars so you don't get run over. If it's quiet you even hear footsteps.

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