It was for quite similar reasons that Live Picture failed.
We had a good product with fanatically devoted users; graphic artists persisted with LP on Mac OS 9 for years after Mac OS X came into common use.
The problem was that former Apple and Pepsi CEO John Sculley was a major invester. Live Picture's image editing product, also called Live Picture - was regarded as a tool by Wall Street and as Sculley told us one day, "The street does not value tools companies".
So he tried to turn us into some manner of internet company so we could have a big IPO. Really the best he could come up with was that our - admittedly superior - competitor to apple's quicktime VR be used over the web for consumer product research.
He actually showed us a demo that depicted a virtual convenience store shelf in which one could use the mouse to pick up a tube of toothpaste than look it over.
LP original retailed for $4k but at the time it was $600. So he was going to drop a wildly popular six hundred dollar product so we could make a little coin by measuring websurfer response to animated toothpaste?
The $4K to $600 pricing drop was also a serious problem. While $4K was definitely too expensive, dropping the price so abruptly alienated our early adopters.
A while after I left LP, I found a Java memory leak detection tool called I think Optimize-It. And yes garbage collected languages do suffer memory leaks if you don't know what you're doing, often seriously so as when I had to configure a job to reboot a client's server because it kept running out of swap space.
Optimize-It was independently developed and published at first but Borland acquired it, then sold it for quite a lot of money.
While a tool like that is indeed valuable, it's a lot cheaper to just reboot your server every night at midnight.
It should have sold for maybe $200 rather than the thousands of dollars that Borland charged.
I am quite sad as Borland, Live Picture, Microport, Seagate and the Santa Cruz Operation once offered really good tech employment to Santa Cruz County.
There are other companies there now so it's not like there is no work, but attempting to transform what really was a tools company so it would sell during the internet bubble threw well over fifty hard-working, incredibly dedicated and talented people out of work.
A coworker and good friend became homeless and quite desperate. I am pleased to report he did finally find a job and so was able to pay for a place to live but when I spoke to him while he was homeless he had lost all hope of survival. Someone like him should never have been homeless.