I started a software company years ago with three friends. We had some good success. We then saw an opportunity to start another product that was adjacent to

I started a software company years ago with three friends. We had some good success. We then saw an opportunity to start another product that was adjacent to Photoshop - basically a tool to improve Photoshop productivity. We moved most of our engineering team to focus on this product. Then Adobe built the functionality we provided right into the product, and our entire installed base moved to that. Meanwhile, we had neglected our core product and customers had become frustrated with the lack of progress and were moving onto other tools. I tell this story because I wonder if this is what happened with 37Signals/Basecamp.