Spot on. They had the tech advantages but the high margins of full work stations blinded them to the changing winds in the industry.

I remember at the time seeing some folks blown away that they could do SGI like stuff on a PC with a $199 add on card. It wasn't identical but it was close enough and you didn't have to switch to out of the Windows ecosystem. That kind of scaling and software inertia is just too hard to compete against.