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That seems most likely from the responses so far.

Since we are offering opinions, I'll hazard a guess as to what really happened. I think Laire and company failed to deliver and squashed MorphOS (remember Laire declared it dead) as a platform. Genesi helped things along considerably by failing to pay everybody. Some of the devs that invested countless hours in the dream quickly banded together and convinced Laire to let them continue on the A-Box so they could at least try and recover some cash owed by selling licenses. Now, what is left of the original dev team is content to sell a few licenses and not worry about advancing MorphOS with any of the features originally promised back in 2002. The end.

I suppose as long as it is bringing in cash it doesn't matter what the plan was.