Nagorak said:
Developers target the lowest common denominator not because adapting new tech is hard, but because they want to sell games. Unfortunately that means the game has to run on a crappy GF1 card
Developers dont sell games, publishers do. What im saying is, not all developers are in this industry just for $$$.
Of course, you're right, if you wanna make some major money you have to cater for as large audience as possible, thus you could theorethically still choose directx3 as your target platform. But this still limits your audience and you could try to develop for all the consoles out there as well.
What im trying to illustrate is, in given point of time, "lowest common denominator" is not a fixed spec. Someone developing a Sims clone might do with intel i810 graphics and be happy about that. Quake clone will obviously require more.
So choosing your target platform is a tradeoff between size of your potential audience and platform capabilities, and everyone is free to choose by themselves.
If, today, as a indie developer, i'd be starting development of lets say arcade space sim with very low budget, i'd happily choose DX8 and Cg as my development tools just based on my gut feeling ( i know gut feelings dont justify business desicions but hey .. its MY money ) and thus limiting my anyways limited audience ( there are scant few of Wing Commander fans left ) even further to DX8 capable gfx card owners.
Target platform is not a "set-in-stone" limitation, there are tradeoffs when choosing one, and choosing higher can perhaps pay off better ( if development time is drastically reduced, content creation is easier, more focus can be put on game itself, not the technology etc. )