I think the point to keep in mind here is this: S3 aren't a consumer electronics company; consumer electronics companies tend to be hardware sellers driving product replacement as hard as possible.

If you're trying to compete with such companies, most of which dwarf S3, you use the computer market tactics - flexible hardware, and good software (ie, "the empeg way" ;) ). There will always be new versions - witness mk1->mk2 - simply because new chips come out and new things become possible. It's the way of electronics.

I really believe S3 know that the reason we make good stuff is because we enjoy it, and they're going to help us to continue doing this. If I didn't believe this, I personally wouldn't have considered the deal.

One other thing to consider: we simply couldn't have carried on as we were, making small numbers of a highly priced product - sooner or later (probably sooner) a big company would have wiped us out. Sure, our product would be better, but everyone would buy the cheaper box. This way, we get to do the fun bits, but it gets marketed by a company with clout.

Hugo