[xenadu02]

> He would be wrong with those claims, too.

No he isn't. His point is that some potential business models need $X amount of software engineering work to have a viable product, has a potential customer base of $Y, and the market will bear a price of $P for the software. Gross income is $Y * $P.

All else being equal as SWEs get more expensive the amount of $X you can get drops. If that puts you below the threshold for a viable product and your business doesn't have the power to raise $P then you don't have a viable business.

This is obviously a simplistic example but the principle still holds.