I don't think you need to shut down that distribution. Because fundamentally, existing costumers often continue to buy existing product at existing prices, as long as they get a faster product. This was something that Gordon Bell pointed out. Existing costumers are design to work at that level of expense. Expensive graphics workstations and rendering servers and so on still exist.
Sure it would go down eventually as all business does in the long run.
The real failure is not picking up new business along the way. With the N64 they showed they could design a consumer product. But outside of that they were in no future consoles. 3dfx and ArtX both came from former SGI. You don't need to stop selling workstations just because you make chips for consoles and other such devices. Nvidia barely survived and might not have if not for consoles. There are other markets where their expertise could have been applied.
Surviving changes like that often requires finding other markets. And then when it comes to making hard choices you need to cut part of the thing that is unprofitable. But this is really hard to do and in some ways it goes against the 90s US corporate philosophy of focusing only on the 'Core' business. DEC for example sold profitable business units that might have been helpful to have. DEC had a printer business and had the potential for a Database business. Oracle calls RDB one of the best acquisitions.
> the N64 they showed they could design a consumer product. But outside of that they were in no future consoles. 3dfx and ArtX both came from former SGI. You don't need to stop selling workstations just because you make chips for consoles and other such devices.
Commodore tried for a play where their - still much lower end - newest generation chipset would have scaled (with the same chips) from being a full low end computer, console, or set-top box, computer (it had a PA RISC core on chip, so could run standalone), a high end graphics card for PCs, and the chipset for a higher end Amiga at the same time.
They ran out of money - short maybe a few million - before being able to test if that would have worked as a way to widen their market.
I wish we'd have gotten to see how that'd unfolded, though Commodore's deep management dysfunction probably still would have made it fail.
During the Amiga era Commodore's board was controlled by old-school big business / Wall Street suits who had literally zero clue about computers or even technology in general. For a while toward the end the inside rumors were that the powers controlling the board were primarily benefiting from international currency and tax games and were cutting costs to harvest whatever cash they could into offshore tax havens while refusing to invest a cent back into saving the company.
Legend says Commodore was at some point approached by Sun willing to OEM their Amiga 3000/UX machines as entry-level Unix workstations and sell them through their distribution channels. The same accounts say Commodore management refused (maybe because the deal had a non-compete part).
They also missed an (earlier) boat with the Commodore 900 workstation, which would run Mark Williams' Coherent OS (a Unix-like system).
Commodore is one long history of management failures... As a big fan at the time, without insight into how dysfunctional it was, it was thoroughly depressing both to see from the outside, and then reading up on the internal chaos years later. It's a miracle they survived as long as they did, and at the same time there were so many fascinating lost opportunities.
ChuckMcM was at Sun at the time, and mentioned a while back he tried to get Sun to buy Commodore outright:
> They also missed an (earlier) boat with the Commodore 900 workstation
They didn't really miss the boat on that. The C900 wasn't really an attractive machine. They would have sold it at a pretty high price. At the same time you could buy a PC with Unix on it that was arguable better. It would have just been another market where they got clobbered by the PC. Not like Zilog was the right horse to bet on anyway.
Many Amiga engineers were UNIX heads, and even Amiga DOS /Workbench started as what might be another take into UNIX like systems with multimedia hardware, when they pivoted away from a games machine.
There are some vintage computer club talks where they dive into this.
On the other hand, thankfully they haven't taken that approach, as otherwise wouldn't have been the multimedia machine it turned out to be, or have OS design decisions like its use of Libraries, Datatypes and everything scriptable that are yet to be mainstream.
With exception of a few UNIX systems like Irix, Solaris with NeWS, NeXTSTEP, Apollo, everything else tends to be the same deck of cards reshuffled.
The real failure is not picking up new business along the way. With the N64 they showed they could design a consumer product. But outside of that they were in no future consoles. 3dfx and ArtX both came from former SGI. You don't need to stop selling workstations just because you make chips for consoles and other such devices. Nvidia barely survived and might not have if not for consoles. There are other markets where their expertise could have been applied.
Surviving changes like that often requires finding other markets. And then when it comes to making hard choices you need to cut part of the thing that is unprofitable. But this is really hard to do and in some ways it goes against the 90s US corporate philosophy of focusing only on the 'Core' business. DEC for example sold profitable business units that might have been helpful to have. DEC had a printer business and had the potential for a Database business. Oracle calls RDB one of the best acquisitions.