Others have answered it pretty well, but here’s a more specific example:
In the long, long ago, IBM was the biggest seller of computer equipment, and by a wide margin. They alone decided the majority of standards in use, as well as what was coming soon. Anticompetitive monopoly tactics were standard there. For the vast majority of customers, you absolutely HAD to be compatible with whatever IBM was selling.
When one of IBM’s competitors would introduce a new and desirable product, IBM would often issue a press release. They would say that they have something similar in the works, and it won’t be compatible with the other brand. The safe option would be to wait for IBM to release theirs rather than take a risk on a whole new ecosystem. This was all despite the fact that IBM never actually had said product in development.
As a result, the customers would be afraid of being stuck on something incompatible, with an uncertain future. They wouldn’t buy it, but they would continue to buy their existing IBM options. Eventually the other product would fold (proving their fears correct), and they’d forget what IBM promised.
Others have answered it pretty well, but here’s a more specific example:
In the long, long ago, IBM was the biggest seller of computer equipment, and by a wide margin. They alone decided the majority of standards in use, as well as what was coming soon. Anticompetitive monopoly tactics were standard there. For the vast majority of customers, you absolutely HAD to be compatible with whatever IBM was selling.
When one of IBM’s competitors would introduce a new and desirable product, IBM would often issue a press release. They would say that they have something similar in the works, and it won’t be compatible with the other brand. The safe option would be to wait for IBM to release theirs rather than take a risk on a whole new ecosystem. This was all despite the fact that IBM never actually had said product in development.
As a result, the customers would be afraid of being stuck on something incompatible, with an uncertain future. They wouldn’t buy it, but they would continue to buy their existing IBM options. Eventually the other product would fold (proving their fears correct), and they’d forget what IBM promised.