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Is it at all possible that once DK got his mind wrapped around a 2 wheeled, self balancing, human transporter that no amount of market analysis was going to stand in the way of full production?
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I think that is a likely contributor. It certainly wouldn't be the first time a high-profile individual swayed thinking.
Dean Kamen was
clearly infected with the thought that his machine would change the world. He had a high profile as a capable inventor (well-earned, in my opinion), and he was willing to put his own money in up front. I sincerely doubt there were many at Segway in the early days who would have been willing to seriously dispute the "vision of the future", which was what the company was all about, after all.