It's a known problem to preannounce next generation products. Once you announce that the next generation is coming out soon, the value of the current version is

It's a known problem to preannounce next generation products. Once you announce that the next generation is coming out soon, the value of the current version is discounted in people's minds. Hm, should I buy the 2011 model now, or wait a couple months for the 2012 model. The problem is when, unlike car models, the 2012 model doesn't come out when one expected and is indefinitely delayed. This can put a company in a position where sales dramatically slow down because people are waiting for the imminent next release, but the release is not forthcoming. More than one company has gone under in this conundrum. The solution to extricate oneself from the mess is to announce that the next version is free for all purchasers of the current one. Then people waiting for the next version will say hey why not I will get the current one while I am waiting rather than wait. These people only purchased because they were assured they were really buying the next version, and the current one was to tide them over. It is similar to when you buy a car and it is delayed so the dealer gives you a loaner car until it arrives. Customers would be quite disappointed, having bought a car and lent a loaner, to find that the dealer felt the loaner was good enough for them and if they want the car they bought they should pay a second time.