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>Not sure why anyone buys products that require using some random company's servers to function
The average joe doesn't think like that because he doesn't understand that there's a need for a server. Most people are so far of about computer tech that it's magic.
>there's no reason why they could not release a local server and updated app with the discontinuation.
Indeed. But that would be less profitable. But again, long term isn't profitable when you use a parasitic business scheme.