Disclaimer: I am not an economist. :)

It seems to me like a good reason for this is market saturation. In the begining, not many people had their own computers. Now most of the ones who want one have one. (In more affluent countries at any rate.) Once everyone that wants to buy a product has done so, you run out of people to sell to unless you can convince them to buy another version of what they already have.

It's affecting the PC market, and I don't see how MS is any different.

Michelle


>Well how did they get into this cash-flow "bind"? How did their prior model go sour on them? Seems to me they (MS) probably had something to do with it. Perhaps a bad model, possibly diminishing value in their products or maybe more savvy customers.
>You're really grasping at straws with this one Doug.