daveybrown

Why Is Adobe’s Creative Solutions Business Slowing?

There shouldn't be a red flag here. The downturn in the Creative Solutions revenue is clearly tied to the product being at the end of its cycle. Boxed software, and especially those products geared towards creatives who want the latest and greatest, typically have a sagging tail at the end of the product cycle as customers who will upgrade already have done so. CS3 has already been out for nearly 18 months. Last year at this time, the product was still within 6 months of its initial release, so this dropoff makes total sense as customers wait for the next version.

Who in their right mind would pay at this point (with CS4 days away) to upgrade to CS3 when that means you'd have to pay again to upgrade to CS4 down the line? Especially when upgrades from earlier versions of CS to CS4 are fully supported.