When free collides with powerful
One of the lessons that Microsoft taught Apple and Google is that ubiquity can be incredibly profitable.
By changing file formats, Microsoft forces every person in an organization to upgrade Word to the current state, because one of the reasons to use Word is that everyone else uses it. This isn't often true for products in the real world--cars and whiskey and apartment buildings inevitably gain variation, whereas software tools are pushed toward a common standard--a new form of monopoly.
The strategy at Microsoft was always to put in power user enhancements, though, so that the power user (the weird one, the one on the edge, the one choosing to care) would hear about the upgrade and insist that everyone else on her team would upgrade as well.
Free, though, turbocharges the movement toward ubiquity at the same time it sabotages the power user. When the 'upgrade' is free, when the new version requires everyone to upgrade and is free as well, that's sort of irresistible. The problem is that free destroys markets even faster than monopoly does, because it's incredibly difficult for competitors without the other income streams to find a reason to compete.