> Commodore expected both the VIC-20 and C-64 to have a shelf life of around 3 years. They were about right in the case of the VIC-20, but the C-64 kept selling about 700,000 units a year through the end of the decade and was still hanging on in 1993. It wasn’t selling well in 1993, mind you, and Commodore didn’t want to be making them by then. But there was still demand for them, and Commodore in 1993 wasn’t in a position to say no to a sale.
This reminds me of the Apple II family. It is well-known that even in 1984, Steve Jobs considered it irrelevant - despite the fact that it alone was providing the revenue that kept Apple solvent. The Lisa and the Mac had both landed with a thud in terms of adoption and sales, mainly due to being very, very expensive (and I'm sure in part because they only supported monochrome displays, until Mac II in 1987, which only got less affordable -- $10,000 in today's money). The Apple II series on the other hand, kept being sold -- schools and consumers couldn't get enough of them - demand that lasted until the last Platinum IIe (1993) and IIgs (1994) rolled off the assembly lines.
The Amiga seems to have been a similar story - Commodore trying to get people to adopt an unquestionably better PC well before the point in the cycle where it was as affordable as the previous PC they were selling.
It seems like there's a lesson here. Trying to drag the public to your "better" new product only works when (A) it solves a real problem for them, and (B) they can clearly see that it's worth the price you're asking.
In the late 80s and early 90s, a lot of people didn't see anything relevant to them that the Mac or Amiga (or the IBM PC) could do that a C64, Apple II, or Atari 8-bit computer couldn't do. Or at least, not nearly enough to spend 10 grand (in today's money). Eventually, relevant capabilities (I'd argue that multimedia CD-ROM software and then, the 'modern-day Internet' were those catalysts) and price both got things back into that sweet spot that "flagship" PCs had been divorced from since 1987.