Vicious or Virtuos Cycle?

The Cycle of Competition is such an interesting one especially in the Tech sector. This post is sparked off by 2 events that happened.
Y'day Yahoo bought Flickr. Today HP buys Snapfish both of them online photo sharing business.

But Yahoo & HP are not in this business and were not really true competition to each other until now. But we have got enough names to reckon with.

Kodak is already into this space. Sony has its Imagestation. Kodak is also getting into printing including photo quality paper which is HP turf. HP is going strong on digital cameras which is Sony territory which, by the way, was initially Canon/Nikon zone. Oh!! it's a coincidence Canon makes printers too which brings us back to HP....

I could go on for ever this way....I mean, is there a differentiation between markets, manufacturers, service providers too?
Everybody is trying to be everybody offering everything....It's an exciting time, I think....but I wonder who will come out on tops at the end of it all....the focused or the diversified....