This explains all their recent 'lifestyle' market positioning and price hikes. They've kept up very high QC, especially on Asian-made instruments, on lots of mass production for a long time, especially for the MI business, but they expanded too far, diluted their own markets, and often ended up competing with their own subsidaries in areas they already practically monopolized. In practical terms, the only real competiton for most of their US-made guitars is the Gibson Les Paul, their amps are not well-regarded, and they make far too many divergent products of mediocre quality for the price. They'll suffer heavily under short term market expectations; that's exactly what Guitar Center went through and the same people who helmed that mess are driving the boat on this one. I think the biggest long term hit is that their instruments will see secondary market devaluation to prices from 15-20 years ago and with their upcoming drop in quality, the product they have been making for that time period will end up being more desirable at primary retail. Ask Norlin how that worked out for them with Gibson.