I was reading an article when I came across a term called Osborne Effect. Eager to check its source, got this piece of info from a wiki :

Osborne Effect was a common slang term in Silicon Valley in the 1980s. It referred to a marketing blunder at Osborne Computer Corporation which might have contributed to that company’s bankruptcy in 1983. In 1983, the inventor Adam Osborne preannounced his next-generation PC before it was even built, saying that it would outperform the current model. Customers immediately stopped buying the current model, in expectation of the next one. With the sudden drop in cash flow, the company lost profits and within months was forced into bankruptcy.

The careless mistake is now known in marketing and computer parlance as the “Osborne Effect”; whenever a company pre-announces a future product before it is ready to ship, and the customers stop buying the old products just to wait for the new one. The company’s announcement which is calculated to freeze the sales of rival companies sometimes has the unfortunate side effect of causing their own product to suffer. As sales dry up, the company goes under.

Some methods have been employed to prevent the “Osborne effect” from taking place. Many companies try to cut their prices in order to maintain demand and profits, but it’s arguable whether it has a real effect or possibly makes the company appear weak. Some business strategists claim that targeting niche markets or supporting agreed industry standards has a beneficial effect to prevent such an occurrence