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RE: From a Layman's View Part I
While you have a point, this post focused on the “missed mark” nature of past promotions. Profiteering, in my opinion, has more to do with prices.
The graphic above was akin to selling movie projectors to movie goers instead of movies and expect them to flock over.
While it sure does affect prices, it's primarily by destroying user retention and causing a market to fail to form it does so IMHO.