Here's how that works, bdbdbd: in an undershot market, the barriers to entry are very low: the cost of development is minor, the options are wide open, and there's little risk of failure. This means that more people can attempt to enter, and more entry-level attempts will succeed because the "good enough" point hasn't been met. However, those who previously worked in an overshot variant of the same market will find that, though the barriers to entry are low, they cannot compete as they have become formulaic in order to make a profit in an overshot market.
In an overshot market, the barriers to entry are very high: the cost of development is astronomical, most of the options have been tried, and there's a high risk of failure. That means that only the companies which are already successful or wealthy can enter, and few entry-level attempts succeed; mostly only old-timers to the industry can pull it off. This mostly involves rehashing successful ideas ad nauseum, since budgets are so high and there's so much to lose if you fail with a risky venture.
Industries swing between these extremes regularly in a simple three-step cycle:
Innovation -> Refinement -> Overshooting
Once you've overshot, you go back to innovating. If you fail to do so, the market crashes. This only applies to unstable markets, however. Stable markets (ie. ones with no reasonable alternatives, like the food preservation market) can stay at the brink of refinement and overshooting and not lose customers because there's no reasonable alternative that does an authentically better job.
Sky Render - Sanity is for the weak.
