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fordy said:

And that's probably another reason why their vision failed, because they were trying to establish rules in too many new frontiers at once...a side effect of trying to patch oversights with more oversights, until it became a complicated mess....

I still think that's too charitable. Yeah, that's the challenge they faced, but a better company could navigate such waters (actually, a better company has) without turning the entire internet against them.

Microsoft didn't fail because digital distribution is some new thing. They failed because they are bad at determining what consumers actually want.