Yes it was. Look at
DirectX's version history. Basically every single major version, and sometimes even minor versions needed a new graphics card to run. That is: DirectX 7: 1999, DirectX 8: 2000, DirectX 8.1: 2001, DirectX 9: 2002, DirectX 9.0c: 2004. That's 5 graphics card upgrades within 5 years. Only if you wanted to run the latest games, of course - because they didn't even start without compatible hardware. And here we are, crying that you only get X FPS on a 7 year-old graphics card in the newest AAA game.
20 years ago, we paid 200 bucks every year. Now, we pay 5-800 every 5 years. That's it.
Edit: Half-Life 2 was regarded as a bloody miracle for supporting DirectX 7 as well as 9, and ran on a GeForce 2 at ultra low graphics, which was a 4 year-old graphics card at that time.