The computer industry, which for many years found ways to avoid extreme price erosion, seems to have lost all self control--just at the time their brethren in the consumer electronics business appear to regained theirs for the first time in more than a decade.
And as the CE industry finally figured out that format wars are bad for consumers, retailers and manufacturers, the PC industry is currently launching three separate high-density floppy disc formats, none of which is compatible with the other, and there are at least four versions of rewritable DVD drives floating around, again, uncompatible with the other. Not to mention the various storage media options presented to digital camera shoppers.
The results, in both industries, are already clear. CE companies are enjoying a fiscal renewal, just in time for the launch of digital TV with its expected higher margins.