In October, ARM Ltd. announced two unhappy firsts: its first-ever quarter-to-quarter sales decline, and its first layoffs. Prior to these developments, ARM seemed to have discovered a bulletproof business model that was easy to mimic: just whip up a core, license it, and let the royalty checks roll in. Indeed, ARM’s previously uninterrupted ascent, coupled with the ready availability of venture capital, gave rise to a flood of new processor core licensors in the late 90’s.