Pristine20 on 01 February 2009
| NJ5 said: Thanks celine. This part is almost scary to read considering the time it was written at: The answer has to do with a concept called "market share". The basic strategy is to "buy market share". That is, you spend a lot of money to make a product that will sell very well. You still lose money on the product, but the huge sales you make put you in an excellent position to make money with a followup product.
The concept is sound and has been proven to work in many markets with different products. Unfortunately, there's an unintended side effect of such products in our industry: they raise the expectations of the consumers to levels that simply cannot be sustained. Once a customer has been dazzled by a money-losing yet fabulous product, he'll turn up his nose at a normal product delivered on a normal budget. And this is precisely what is happening to our customers. Nowadays, if you don't spend a half-million-plus on your product, it won't sell.
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It is scary but a side-effect of competition nonetheless. We'll probably end up in a situation like the OS market where there are only 2 head honchos and everyone else has been bought out.
"Dr. Tenma, according to you, lives are equal. That's why I live today. But you must have realised it by now...the only thing people are equal in is death"---Johann Liebert (MONSTER)
"WAR is a racket. It always has been.
It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives"---Maj. Gen. Smedley Butler
