To illustrate just how bad the overproduction and oversupply problem was for the HDD makers, let's just take a look at this old statement from WD back in 1997: "Western Digital Announces Actions to Address Industry's Sustained Oversupply and Aggressive Pricing Conditions WDC Western Digital Corporation today announced a series of actions designed to lessen its exposure to sustained oversupply and higher-than-normal competitive pricing pressures in the hard drive industry's distribution channel and to sharpen the Company's focus and resources on its desktop and enterprise storage businesses. The Company will: * further reduce production of desktop hard drives from previously announced levels; * further accelerate its transition to desktop and enterprise hard drives … Chuck Haggerty, chairman, president and CEO of Western Digital, stated: The conditions leading to our current financial performance have been painful in the near term.