Avie Tevanian, Apple Chief Software Technology Officer, said that they would slow down "a little bit" the Mac OS X development, because the current pace is simply not sustainable.
Now that the system is mature, it is an understandable move. The setback(s) in Microsoft's Longhorn release date are certainly not alien to this decision. The developpers will now be able to shift focus to other areas and other software titles.
In the meantime, 10.3.4 betas are being released at a crazy pace. The latest nightly build is 7H58.
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