I certainly cannot disagree that HDMI has given major headaches to many A/V firms. The rapid pace of change that is not uncommon in the world of software driven standards committees is rather different than the glacial pace that most audio products typically "evolve"; every read up about how the RIAA phone equalization curve came about? http://en.wikipedia.org/wiki/RIAA_equalization#History

Your math does not seem quite right regarding Outlaw's most obvious web centric competition -- http://gdgt.com/emotiva/av-receivers/ I seem to recall that they have more than their fair share of problems too... I think this a little like the "big guys" of motorcycle manufacturing targeting true premium products from the likes of Harley Davidson and not group off on their own... like http://en.wikipedia.org/wiki/Jawa_Motors

The bottom line on the brutal nature of competition amongst A/V products marketers is no secret. Any business journal is filled with tales of former "marque" names being part of "house of cards" types private equity deals and shedding multiple product offerings, often at the point in one's line where such products hold maximum appeal http://axiomaudio.com/tips_separates_electronics.html. The "marketing overload" that has long been the drum that the "big names" pound in the retail channel works directly against Outlaw's MUCH lower overhead which enables them to offer the EXACT kind of products that KILL the margins of the "big name" premium offerings at significantly smaller margin. The reason that Outlaw can survive on such meager margin it also what leaves them all the more susceptible to the demands of "bigger fish". The rampant abuse of "intellectual property rights" that does help some Asian based manufacturers to leapfrog their competitors also leaves open a door to firms on both sides of the problem to resort to more "old fashioned" business tactics...

http://www.chinaeconomicreview.com/strong-arm-law

http://www.financialexpress.com/news/column-chinas-strongarm-tactics/966241/0