It's a little more complicated, but not much.
The real problem is failing to estimate opportunity costs correctly.
If you need to get Product X out the door and you spend two years rewriting it, you have to failed at basic cost/benefit analysis.
That's simple. More complicated: the user POV can look very different to the PM POV. Which is always a bad thing.
I use a number of DAWs, and on some DAWs the PMs keep adding releasing new versions with new features that are interesting, but non-essential. Meanwhile version x.0 is always broken in important ways, and may be so broken it's literally unusable. And some bugs are just never fixed.
From one POV they need to ship n+1.0 to keep the annual upgrade cycle humming and the income stream ticking over. From another, these companies accumulate a lot of frustration and ill-will, and when a realistic alternative appears not a few users jump ship. So they lose that income anyway.
What's the ideal solution? Other DAW companies ship updates less often. They rely on positive PR, better marketing, and general customer good-will. They seem to be doing okay.
I have no idea how the financials work out, or if they're even comparable between two products that are nominally identical but are used by different demographics.
Even so - the critical point is that someone in the management food chain should at least be attempting to assess these strategic trade-offs.
To an outsider it often looks as if this isn't happening. Instead, the org made a decision a long time ago, the decision has never been updated or challenged, and now the org is just following it robotically whether or not it still makes commercial sense.