<< << It's time for someone to loosen the stranglehold they have on the sound card market. Why, Oh, Why did Aureal have to leave us >>
Aureal didn't leave willingly. They were sued into oblivion, even though they won.
For some reason Creative's monopolistic actions don't get nearly the same press as Microsoft's or Intel's, but they are arguably more open about their strategies. Creative Labs, knowing full well that they didn't have a fair case, sued Aureal on all sorts of spurious patent infringement charges. They knew that Aureal, a relatively small company, couldn't afford a protracted legal battle, so that is exactly what they aimed for.
Aureal won the case, but the weight of the legal fees and injunctions had already taken its toll: they filed for Chapter 11 and put their assets on the block. Who was the first buyer to come knocking? Why, Creative Labs, of course. What a surprise.
So we had a perfectly good company that wanted to make some money and bring competition to a monopolized market, but were killed by sheer legal bullying. This is the kind of thing that screams for tort reform.
What's even more disturbing is that Creative Labs considers this legal rape to be an ordinary part of their business model -- a tactic as legitimate as product innovation or price breaks. It's as if their board sat down and said, "well, we could try to compete with them, and that would probably work OK, but all in all it's easier to just sue them into the ground, so we'll do that instead, meeting adjourned".
Modus >>
Many hardware makers do this to some extent. Rambus was pretty blatent, and they got laughed out of court many times. Intel has had their moments. I don't think Creative Labs is doing THAT much to hinder competition, but I only know what the media tells me. Biased news sux0rs.