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I don't think that was it. Slashdot would only run stories from their 'content partners' like ZDNet and the Register, so they were always 2 days behind Reddit/HN/Twitter/etc.

(When RMS was 'cancelled', that would have been a huge deal there in the old days, they had one post days later.)

Also Digg wasn't just a graphical redesign, they changed how the site worked. I don't think Slashdot ever did that.

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IIRC I was done with Slashdot before those other sites were even created (or at least widely popular).
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It is an interesting case study. Most designers would not think that they can tank a site.
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One of the smartest things reddit ever did was ensure old.reddit.com remains fully functional. I imagine one day they'll EOL it, and when they do I'll no longer be a reddit user (probably not really a bad thing).
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Even if Old Reddit still exists, the vast majority of users are on New Reddit or the app on their phones. Those are designed to keep people endlessly scrolling, not sticking around in any one place and building community. Also, the phone as default device has reduced comments to 140-character quips, and one looks like a real weirdo now if one writes a solid paragraph or two like in the old days.
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they're gonna start making you log in on old to combat scrapers.
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I’m good with that. Wanting usable design is not related to avoid logging in.
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Wow following the Digg playbook
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Well, it's kinda surprising that Digg actually followed the Slashdot playbook (Slashdot fucked up first) - Digg should have at least learned something from Slashdot's mistake.

Both stories are pretty fascinating examples of how corporate dynamics can ruin a product. In Slashdot's case it was a clear example of "well, we hired a bunch of designers, so obviously we need to do a UI redesign!", but the designers had no idea how users actually used the site. They added a ton of whitespace and IIRC collapsible content to make the site more "modern", but in doing so it made it impossible to quickly scan the comments for high value/insightful responses. In Digg's case it had all the hallmarks of VC meddling ("we've got to monetize!") While people often comment about how buggy Digg V4 was when it released, the bigger issue was the content was just laughably bad - it was changed to like page after page of the dumbest corporate spam. Anyone using the site for 5 minutes would have known it was fucked, so I'm guessing there was just so much internal pressure to "get shit out the door" that they just wanted to release something rather than admit what they built was a turd.

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I can’t believe how long ago that was.
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