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I disagree - I feel that in software if anything there's a huge amount of room for niche products.

My favourite story here is someone I know who runs an online drag-racing simulator game sort of thing. Lots of social interaction, trading parts, earning in-game money, etc, all subscription-based.

He doesn't have a huge number of players - but he's found enough die-hard supporters that he enjoys a very comfortable standard of living (certainly makes more than your average software engineer).

You don't need to make $0.01 from a million people if you can make $10 from 1000 people.

Oh, and there's more to software than the web - this is something that I think people are forgetting in the day and age of Google and Twitter.

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