RE: Don't get me going
The quarter-by-quarter thinking that most companies (in the USA at least) work by is largely killing them.
Development of any significant product, or new set of products, takes well over a year and does not generate any revenue during the quarters that the expenses happen. This makes it look very unpleasant from the quarter-by-quarter mindset.
Of course there is a perfectly good way to address the problem: show the ongoing development as an asset that grows in value during the development. That way the business unit is still being profitable even if revenue is not forthcoming. The only downside to this is that it increases tax. However, that tax would have had to be paid anyway - when the new product is actually sold.
Quarter-by-quarter thinking will always favour actions that have a short-term payoff, even if they have far less long-term payoff. eg. Advertising, discount programs etc.
Development-as-expense is a neat bit of trickery to delay tax ppayment. Unfortunately is also means that the books make it very unappealing to do development at all.
Companies are directed through their books. Unless the book-keeping measures are aligned with health behaviour, important functions (eg. development) will get squashed.